Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Place of Supply of Services

From
HM Revenue & Customs
Updated
, see all updates

Hire of means of transport: Introduction

From 1 January 2010 there are changes to the rules for the place of supply of hire of means of transport.

The place of supply for short-term hire of a means of transport is the place where the vehicle is put at the disposal of the customer. This applies for supplies to both B2B and B2C.

The place of supply for long-term hire of a means of transport falls under the general rule. This means that it is taxable where the customer belongs for B2B supplies, and where the supplier belongs for supplies B2C.

However, a further change will come into effect from 1 January 2013. From then the place of supply of B2C long-term hire of a means of transport will be where the customer belongs except for pleasure craft which will be the place where put at the disposal of the customer where the service is provided from the supplier’s place of business or fixed establishment in that place.