Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Finance Manual

HM Revenue & Customs
, see all updates

Other law and policy to consider: place of supply

For VAT purposes the place of supply is the place where a supply is treated as being supplied, or made. This is the place where it is liable to any VAT: for many financial services, the place of supply of the service will determine whether input tax is recoverable. This topic will be discussed further in VATFIN1550.

The place of supply for financial and banking services is where the customer belongs; provided the customer:

  • is outside the EU; or
  • receives the supply for the purposes of their business.

Otherwise it is where the supplier belongs. Many, but not all, of these services are exempt when made in the UK. The relevant law is set out at Section 7A of the VAT Act 1994 and can be found in full in VATPOSS06200.