VATPOSTR3120 - Freight transport: Law: from 1 January 2010

UK Law from 1 January 2010

Section 7A, Value Added Tax Act 1994

(1) This section applies for determining, for the purposes of this Act, the country in which services are supplied.

(2) A supply of services is to be treated as made—

(a) in a case in which the person to whom the services are supplied is a relevant business person, in the country in which the recipient belongs, and

(b) otherwise, in the country in which the supplier belongs.

(3) The place of supply of a right to services is the same as that in which the supply of the services would be treated as made if made by the supplier of the right to the recipient of the right (whether or not the right is exercised); and for this purpose a right to services includes any right, option or priority with respect to the supply of services and an interest deriving from a right to services.

(4) For the purposes of this Act a person is a relevant business person in relation to a supply of services if

(a) the person carries on a business, and

(b) services are not received by the person wholly for private purposes, whether or not the services are received in the course of business

(5) Subsection (2) has effect subject to Schedule 4A.

Schedule 4A, Value Added Tax Act 1994

Paragraphs

9B Transport of goods

Where—

(a) a supply of services to a relevant business person consisting of the transportation of goods would otherwise be treated as made in the United Kingdom, and

(b) the transportation takes place wholly outside the United Kingdom,

the supply is to be treated as made outside the United Kingdom.

9C— Ancillary transport services

(1) Where—

(a) a supply of services to a relevant business person consisting of ancillary transport services would otherwise be treated as made in the United Kingdom, and

(b) the services are physically performed wholly outside the United Kingdom,

the supply is to be treated as made outside the United Kingdom.

(2) In sub-paragraph (1)(a) “ancillary transport services” means loading, unloading, handling and similar activities.

10 Intermediaries

(1) A supply of services to which this paragraph applies is to be treated as made in the same country as the supply to which it relates.

(2) This paragraph applies to a supply to a person who is not a relevant business person consisting of the making of arrangements for a supply by or to another person or of any other activity intended to facilitate the making of such a supply.

Paragraph 11

(1) A supply of services to a person who is not a relevant business person consisting of the transportation of goods is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each.

(2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—

(a) it takes place in the course of a journey between two points in the 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 (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.

Paragraph 13

(1) A supply to a person who is not a relevant business person of ancillary transport services is to be treated as made where the services are physically performed.

(2) “Ancillary transport services” means loading, unloading handling and similar activities.