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HMRC internal manual

VAT Place of Supply of Services

HM Revenue & Customs
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Miscellaneous issues: Liability

It is important to remember that identifying the place of supply of a service and determining the VAT liability of a supply of a service are quite separate issues.

Once it is determined that a supply of services takes place outside the UK, it is regarded as outside the scope of UK VAT. A supplier who belongs in the UK is not required to charge UK VAT on such a supply.

On the other hand, the supplier may be liable to account for VAT in the country where the supply is made if this is elsewhere in the EC. It is the supplier’s responsibility to make their own enquiries about the VAT rules and their obligations in other Member States: HMRC has no jurisdiction outside the UK, and is unable to provide guidance on VAT regimes operating in other countries. However businesses operating in other Member States can find contact addresses for administrations in particular Member States at

A supply of services that takes place within the UK is described as within the scope of UK VAT and you must then consider the liability of the supply. The VAT Act 1994 provides for zero ratings in Schedule 8, exemptions in Schedule 9 and reduced rates in Schedule 7A. Where supplies within the UK are likely to be zero-rated, reduce rated or exempt, the applicable legal provision and location of the current liability rules are indicated in the relevant sections of this manual.