VATPOSS07800 - Land-related services: VAT registration for suppliers of land-related services
The fact that land-related services are supplied where the land is situated has implications for the VAT registration position of non-UK suppliers making supplies in the UK. Following the decision in W H Payne & Co [1995] VATDR 490, (VTD 13668), making supplies of land-related services does not mean that the supplier belongs where the land is situated. However, where a non-UK supplier has land in the UK you should look closely at whether there are also human and technical resources here which are sufficient to create a fixed establishment (see VATPOSS04500).
The registration position is as follows:
- A supplier with a fixed establishment in the UK, from which the supplies are made, is required to register in the UK and account for VAT on his land-related services, subject to the normal rules.
- Where a supplier without a fixed establishment makes UK land-related supplies of a type that would fall within the exemption save for the option to tax, they are required to register and account for VAT on their services.
- A supplier without a fixed establishment that makes land-related supplies of a type not of a description covered in Schedule 9, does not need to register for VAT in the UK if these services are supplied to customers registered for VAT in the UK. The customer can account for the tax using the reverse charge procedure.
- A supplier that provides services to non-VAT registered customers is required to register in the UK and account to VAT on all UK supplies, subject to the normal rules.