VAT on services and place of supply

Where a service is treated as supplied for VAT. It decides who charges what.

What it means

Place of supply rules determine which country's VAT applies to a service, with different general rules for business and consumer customers and special rules for particular services.

Why it matters

Getting it wrong means charging VAT that should not have been charged, or not charging VAT that should have been, and both are corrected at your cost.

What it looks like in practice

For business-to-business services the general rule is where the customer belongs, with the reverse charge applying. For business-to-consumer it is generally where the supplier belongs, with exceptions for digital services and land.\n\nDigital services to consumers abroad have their own regime.

What to watch out for

Selling digital products to overseas consumers without considering local VAT. Thresholds and registration obligations vary by country.

Where to get proper advice

GOV.UK for the current rates and thresholds, which move most years. Your accountant before acting — this is exactly the kind of question a fee is for.