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HMRC internal manual

VAT Place of Supply (Goods)

Main rules: intra-EC movements of goods: basic rule

EC Law

Article 32 Principal VAT Directive

  1. Where goods are dispatched or transported by the supplier, or by the customer, or by a third person, the place of supply shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer begins.

UK Law

Section 7 VAT Act 1994

(7) Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated—

(a) as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and

(b) as supplied outside the United Kingdom in any other case.


Under section 7(7)(a) a supply involving the removal of goods from the UK to another EC Member State takes place in the UK. Conversely, under 7(7)(b), a supply of goods involving the removal of those goods to the UK from another EC Member State, takes place outside the UK (in the Member State of departure). Section 7(7) also applies to exports of goods (see VATPOSG3700).