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HMRC internal manual

VAT Place of Supply (Transport)

From
HM Revenue & Customs
Updated
, see all updates

Freight transport: Intra-EC movements before 1 January 2010: recipient not registered for VAT

Where supplies of freight transport, ancillary services, or intermediary services in arranging these are supplied to private individuals, unregistered bodies, or customers who do not give a valid VAT number the:

  • freight transport and related intermediary services are supplied in the country where the transport begins (“the place of departure”), and
     
  • ancillary services and related intermediary services are supplied in the country where the ancillary service is performed.

 

The place of supply will be the Member State where the supply takes place as defined by these rules, no matter where the supplier or the customer belong. Traders making such supplies may therefore be liable to register and account for VAT in countries other than where they belong. Where the place of supply of ancillary services is the UK, some of them are zero-rated under Schedule 8, Group 8, item 6. Guidance on the liability of freight transport and ancillary services can be found in the manual covering the liability of transport and in Notice 744B (Freight transport and associated services).

For example, where a UK supplier transports goods for an unregistered person from:

  • the UK to France, the supply takes place in the UK where the movement begins
     
  • France to Belgium, the supply takes place in France where the movement begins (the UK supplier may have to register and account for VAT in France subject to the local rules), and
     
  • France to the UK, the supply takes place in France where the movement begins (again the UK supplier may have to register in France and account for VAT due, subject to the local rules).
     

Where an unregistered person who belongs in the UK receives intra-EC freight transport and related services from a supplier who belongs outside the UK, the same rules apply. For example, if the freight transport begins in the UK the supply is made here and the supplier is liable to register and account for VAT subject to current turnover limits.