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HMRC internal manual

VAT Place of Supply of Services

HM Revenue & Customs
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General rule: Customers with business and non-business activities

From 1 January 2010, if your customer is engaged in both business and non-business activities (for example, a charity or government department) supplies to them will be treated as a B2B supply for the purposes of the place of supply rules. This means, for example, that general rule supplies by UK businesses to overseas charities will be outside of the scope of UK VAT, even if the services relate to the charity’s non-business activities, providing that the charity has some business activities. Similarly, where a UK based charity which is engaged in both business and non-business activities receives general rule services, it will always be required to account for reverse charge VAT on those supplies, even if they relate solely to its non-business activities.