VATPOSS06300 - General rule: Supplies to relevant business customers (B2B)

In order to determine the place of supply using the general rule it is important to determine whether the supplier’s customer is a relevant business customer. Customers that have both business and non-business activities, such as charities and government bodies, are treated as being in business for all activities if they are a relevant business person.

Guidance on determining whether the customer is a relevant business person is here VATPOSS01350.

The general rule is that services supplied B2B are taxable where the customer belongs. If the supplier and customer belong in the UK then the UK supplier accounts for VAT on his supply. However, where the supplier is in the UK the customer outside the UK the supply will be outside the scope of UK VAT.

UK suppliers treating services as outside of the scope of UK VAT will be required to retain evidence that their customer is in business (see VATPOSS06500).