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HMRC internal manual

VAT Place of Supply of Services

Introduction: What is a ‘relevant business person’?

For many of the place of supply rules it is important to establish whether a supply is made to a relevant business customer (B2B) or non-business customer (B2C). A supply is treated as B2B where the customer is a relevant business person. A relevant business person is anyone who is either:

  • a taxable person within the scope of Article 9 of the Principal VAT Directive
  • registered for VAT in the UK
  • registered for VAT in another Member State
  • registered for VAT in the Isle of Man.

Some recipients of a service may have non-business activities (such as charities or local government bodies) but these are still treated as B2B supplies where the customer meets any of the above conditions, even if the service relates to their non-business activities.