The article explains how place of supply rules determine VAT treatment for cross‑border services, outlining B2B and B2C rules, land‑related exceptions, and the importance of identifying place of supply to avoid compliance issues. It also highlights that UK VAT applies if the place of supply is the UK, and that non‑established businesses face a nil registration threshold.
For B2B services, the place of supply is normally where the customer belongs for VAT purposes.
For B2C services, the place of supply is generally where the supplier belongs for VAT purposes.
Land‑related supplies are taxed where the land is located regardless of supplier and customer.
The UK has a nil registration threshold for non‑established businesses.
If the place of supply is outside the UK, the supply is typically outside the scope of UK VAT, but there may still be VAT consequences in the destination country.
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AOL · about 16 hours ago
A Christian private school in Reading, England, closed after the UK government removed the VAT exemption on private school fees, imposing a 20% standard rate from 1 January 2025. The change, combined with rising business rates, made the school’s finances untenable, prompting its closure in March 2026.
HM Revenue & Customs · about 20 hours ago
HM Revenue & Customs outlines its vision, policies and expectations for working with third‑party software developers, emphasizing the importance of commercial products in the administration of UK tax and customs. The collection includes policy papers on strengthening standards, strategic approaches, and external integration, aiming to support a healthy software sector and modernise the tax system.
GOV.UK · 2 days ago
The UK government’s Simplified Customs Declaration Process (SCDP) offers a two‑stage electronic declaration method that reduces border controls for authorised traders. Importers must be pre‑authorised, hold an EORI number, and submit a supplementary declaration within ten calendar days of the reporting period’s end, keeping records for four years.
BBC · 2 days ago
Trinity Christian School in Reading closed after 13 years, citing the removal of VAT exemption on private school fees and rising business rates as the main reasons. The UK government introduced VAT on private school fees from 1 January 2025 at the standard 20% rate, expected to raise £1.8 billion a year by 2029/30. The school’s business rates increased to £35,000 from about £5,000, and its application for discretionary relief was denied.
RossMartin · 3 days ago
HMRC’s Brief 9 confirms that supplies of locum doctors are exempt from VAT under Item 5, Group 7, Schedule 9 of the VAT Act 1994. The guidance also explains how businesses can claim refunds for over‑declared output tax on such supplies made within the last four years, and notes that HMRC is reviewing policy and will issue updated guidance in due course.
UK Government · 3 days ago
HMRC has released guidance (GfC18) to help businesses in the oil and gas sector determine the VAT place of supply for services. The document outlines special place of supply rules, general rules, fixed establishment rules and other factors that may affect VAT treatment. It is intended to reduce the risk of errors and penalties.
