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HMRC internal manual

VAT Place of Supply (Transport)

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HM Revenue & Customs
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Freight transport: Law: before 1 January 2010

UK LAW before 1 January 2010

Articles 6, 7, 9 10 - 12 & 14 of the VAT (Place of Supply of Services) Order 1992

TRANSPORT

  1. Subject to articles 7 and 10 below, services consisting of the transportation of passengers or goods shall be treated as supplied in the country in which the transportation takes place, and only to the extent that it takes place in that country.

  2. For the purposes of article 6 above, there shall be treated as taking place wholly in a country any transportation which takes place partly outside the territorial jurisdiction of that country where -

(a) it takes place in the course of a journey between two points in that country, whether or not as part of a longer journey involving travel to or from another country; and

(b) the means of transport used does not put in or land in another country in the course of the journey between those two points.

  1. Subject to article 14 below, where a supply consists of ancillary transport services, it shall be treated as made where those services are physically performed.

  2. Subject to article 14 below, where a supply of services consists of the intra-Community transport of goods, it shall be treated as made in the member State in which the transportation of the goods begins.

SERVICES OF INTERMEDIARIES

  1. Subject to article 14 below, where services consist of the making of arrangements for the intra-Community transport of goods or of any other activity intended to facilitate the making of such a supply, they shall be treated as supplied in the member State where the transportation of the goods begins.

  2. Subject to article 14 below, where services consist of the making of arrangements for the supply by or to another person of ancillary transport services in connection with the intra-Community movement of goods or of any other activity intended to facilitate the making of such a supply, they shall be treated as supplied in the member State where the ancillary transport services are physically performed.

USE OF CUSTOMER’S REGISTRATION NUMBER

  1. Where a supply of services -

(a) falls within articles 10 to 13 above;

(aa) consists of the valuation of, or work carried out on, any goods, which are then dispatched or transported out of the member State where those services were physically carried out; or

(b) consists of ancillary transport services provided in connection with the intra-Community transport of goods,

and the recipient of those services makes use, for the purpose of the supply, of a registration number, then, notwithstanding any provision of this Order to the contrary, the supply shall be treated as made in the member State which issued the registration number, if, and only if, the supply would otherwise be treated as taking place in another member State.

 

EC Law before 1 January 2010

Article 47 Principal VAT Directive

The place of supply of intra-Community transport of goods shall be the place of departure of the transport. However, where intra-Community transport of goods is supplied to customers identified for VAT purposes in a Member State other than that of departure of the transport, the place of supply shall be deemed to be within the territory of the Member State which issued the customer with the VAT identification number under which the service was rendered to him.

Article 48 Principal VAT Directive

“Intra-Community transport of goods” shall mean any transport of goods in respect of which the place of departure and the place of arrival are situated within the territories of two different Member States.

“Place of departure” shall mean the place where the transport of the goods actually begins, irrespective of distances covered in order to reach the place where the goods are located.

“Place of arrival” shall mean the place where the transport of the goods actually ends.