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HMRC internal manual

VAT Place of Supply of Services

Establishment making or receiving the supply: Embassies, legations, consulates, etc of overseas government

Embassies, legations, consulates and other building in the UK used by overseas governments are regarded as part of the UK for VAT purposes. That means where, for example, construction services are carried out on such buildings the place of supply is the UK, as that is where the building is located and is where the work is carried out. It does not matter that the building may be occupied by a government from a country outside the UK as the country that is using the building has no bearing on the VAT place of supply of services rules.

General rule B2B services which are supplied to the authorities of a non-EC government via its Embassy in the UK are regarded as received outside the UK and therefore not subject to VAT. An example of this would be advertising for a recruitment drive within the UK for a foreign government’s armed forces. However, services received by an Embassy in the UK for its own use are received within the UK.