Business Spotlight 1 VAT: relocation of telecommunication service providers, Internet service providers and broadcasters (9 February 2011)
Published 9 February 2011
© Crown copyright 2011
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This guidance has been withdrawn as the information is out of date following changes in the place of supply rules effective from 1 January 2015.
The place of supply of telecommunications, internet service provision and broadcasting services when provided to non- business customers in the EU is the place where the supplier is established. Some suppliers to the UK market claim to have reorganised their businesses so that the place of supply is no longer in the UK but another member state in order to take advantage of more favourable VAT rates.
HM Revenue and Customs (HMRC) Brief 58/09 explained their approach to such cases. As a result of this approach a number of suppliers have agreed that their supplies are made in the UK. HMRC will continue to robustly challenge any existing or future arrangements of this nature.