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HMRC internal manual

VAT Place of Supply of Services

HM Revenue & Customs
, see all updates

Other services to non-EU customers (B2C): Banking and financial services

The rules in this paragraph relate only to place of supply. Many insurance and financial services (including banking) are exempt from VAT in the UK under the VAT Act 1994, Schedule 9, Groups 2 and 5. This paragraph includes all financial and insurance services, not only those which are exempt when supplied in the UK and EC, but those that are taxable as well.

Examples of services within this heading include

  • the granting of mortgages and loans
  • storage of gold bullion or gold coins by a bank or a dealer in gold who is a subsidiary of a bank
  • sales of securities as principal
  • sales of unallocated precious metals (gold, silver, platinum, palladium, rhodium, ruthenium, osmium and iridium) or of unallocated precious metal coins. Goods are unallocated if they remain an unidentifiable part of a larger stock of goods held by the supplier. There is further information about the distinction between transactions in precious metals and whether they are goods or services in the manual covering supply and consideration
  • debt collection
  • portfolio management
  • the provision of insurance or reinsurance
  • sales of financial futures and options
  • trustee services

You will find detailed guidance on the interaction between place of supply, liability and deductibility of input tax in respect of international insurance and claims handling services in the manual covering the liability of insurance.