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HMRC internal manual

VAT Place of Supply of Services

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HM Revenue & Customs
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Restaurant and catering services: Law

Schedule 4A paragraph 5 VAT Act 1994

5 (1) A supply of services to which this paragraph applies is to be treated as made in the country in which the services are physically carried out.

(2) This paragraph applies to the provision of restaurant or catering services, other than the provision of services to which paragraph 6 applies.

Schedule 4A paragraph 6 VAT Act 1994

(1) A supply of services consisting of the provision of restaurant or catering services on board a ship, aircraft or train in connection with the transportation of passengers during an EC passenger transport operation is to be treated as made in the country in which the relevant point of departure is located.

(2) For the purposes of sub-paragraph (1) “an EC passenger transport operation” is—

(a) a passenger transport operation taking place either wholly within one or more member States, or

(b) any part of a passenger transport operation taking place partly within one or more member States which takes place between the relevant point of departure and the relevant point of arrival.

(3) In sub-paragraph (2)—

“the relevant point of departure”, in relation to a part of a passenger transport operation taking place partly within one or more member States, means the first point in the part of the operation at which passengers can embark in a member State, and

“the relevant point of arrival”, in relation to a part of a passenger transport operation taking place partly within one or more member States, means the last point in the part of the operation at which passengers who have embarked in a member State can disembark in a member State.

(4) For the purposes of this paragraph the return stage of a return passenger transport operation is to be regarded as a separate passenger transport operation; and for this purpose a return passenger transport operation is one which takes place in more than one country but is expected to end in the country in which it begins.

EC VAT Law - Article 55 VAT Directive 2006/112/EC

The place of supply of restaurant and catering services other than those physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community, shall be the place where the services are physically carried out.

EC VAT Law - Article 57 VAT Directive 2006/112/EC

  1. The place of supply of restaurant and catering services which are physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community, shall be at the point of departure of the passenger transport operation.

  2. For the purposes of paragraph 1, “section of a passenger transport operation effected within the Community” shall mean the section of the operation effected, without a stopover outside the Community, between the point of departure and the point of arrival of the passenger transport operation.

“Point of departure of a passenger transport operation” shall mean the first scheduled point of passenger embarkation within the Community, where applicable after a stopover outside the Community.

“Point of arrival of a passenger transport operation” shall mean the last scheduled point of disembarkation within the Community of passengers who embarked in the Community, where applicable before a stopover outside the Community.

In the case of a return trip, the return leg shall be regarded as a separate transport operation.