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HMRC internal manual

VAT Place of Supply (Goods)

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HM Revenue & Customs
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Gas and electricity: Legislation: UK law

Section 9A VAT Act 1994

Reverse charge on gas, electricity, heat or cooling supplied by persons outside the United Kingdom

(1) This section applies if relevant goods are supplied -

(a) by a person who is outside the United Kingdom,

(b) to a person who is registered under this Act, for the purposes of any business carried on by the recipient.

(2) The same consequences follow under this Act (and particularly so much as charges VAT on a supply and entitles a taxable person to credit for input tax) as if -

(a) the recipient had himself supplied the relevant goods in the course or furtherance of his business, and

(b) that supply were a taxable supply.

(3) But supplies which are treated as made by the recipient under subsection (2) are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).

(4) In applying subsection (2) the supply of relevant goods treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases to which this section applies.

(5) “Relevant goods” means-

(a) gas supplied through a natural gas system situated within the territory of a member State or any network connected to such a system,

(b) electricity, and

(c) heat or cooling supplied through a network.

(6) Whether a person is outside the United Kingdom is to be determined in accordance with an order made by the Treasury.

VAT (Place of Supply of Goods) Order 2004

SUPPLIES OF GAS, ELECTRICITY, HEAT OR COOLING

Interpretation of Part 3

  1. In this Part -

(a) “the Act” means the Value Added Tax Act 1994;

(b) “dealer” means a person whose principal activity in respect of receiving supplies of relevant goods is the re-selling of those goods and whose own consumption of those goods is negligible;

(c) “relevant goods” means -

(i) gas supplied through a natural gas system situated within the territory of a member State or any network connected to such a system,

(ii) electricity, and

(iii) heat or cooling supplied through a network;

(d) “re-selling” for the purposes of article 9(b) does not include -

(i) re-sale as part of a single composite supply of other goods or services, or

(ii) re-sale as a supply that falls to be disregarded under section 43(1)(a) of the Act where relevant goods are to be effectively used and consumed by a member of a VAT group;

(e) “VAT group” means any bodies corporate treated under sections 43A to 43C of the Act as members of a group.

  1. Relevant goods supplied to a dealer shall be treated as supplied at the place where that dealer has established his business or has a fixed establishment to which the relevant goods are supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.

  2. Subject to articles 12 and 13, supplies of relevant goods not falling within article 10 above shall be treated as supplied at -

(a) the place where the recipient of the supply has effective use and consumption of the goods, or

(b) in relation to any part of the goods not consumed, the place where the recipient of the supply has established his business or has a fixed establishment to which the goods are supplied, or in the absence of such place of business or fixed establishment, the place where he has his permanent address or usually resides.

  1. Where the recipient of supplies of relevant goods supplies those goods as part of a single composite supply of other goods or services, that constitutes effective use and consumption by him of the goods for the purposes of article 11(a).

  2. The supply of relevant goods to a member of a VAT group, where the goods are effectively used and consumed by a member of that group, shall constitute effective use and consumption of the goods for the purposes of article 11(a).

  3. For the purposes of section 9A of the Act (reverse charge on certain goods supplied by persons outside the United Kingdom) a person is outside the United Kingdom if he has established his business or has a fixed establishment outside the United Kingdom or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides is outside the United Kingdom.

VAT (Imported Gas, Electricity, Heat and Cooling) Relief Order 2010

  1. The VAT chargeable on the importation from a place outside the member States of -

(a) gas -

(i) through a natural gas system or any network connected to such a system, or

(ii) fed in from a vessel transporting gas into a natural gas system or any upstream pipeline network,

(b) electricity, or

(c) heat or cooling supplied through a network,

shall not be payable.