Chapter 19 - International Aspects

Question 1

Place of Supply

Answer 1

Place of supply is the place where the supply is liable to VAT.

Question 2

Current Rates - General Place of Supply

Answer 2

Two rules under S.7A VATA 1994 for determining the place of supply for services:

• business-to-business
• business-to-consumer

Question 3

Business-to-Business (B2B)

Answer 3

Where one business supplies services to another, the PoS is where the customer/buyer belongs

Question 4

Business-to-Consumer (B2C)

Answer 4

Where one business supplies services to a consumer, the PoS is where the supplier/seller belongs

Question 5

Exceptions to the General Place of Supply Rules

Answer 5

There are overrides to the normal rules that are in S.4A of VATA 1994

Question 6

Services Related to Land

Answer 6

Includes grants and assignments of leases, estates agents, auctioneers, architects and surveyors services) - place of supply is the country where the land is

Question 7

Passenger Transport Including Their Luggage

Answer 7

Place of supply is where the transportation takes place. If several countries are covered, the liability is split between them based on distance covered in each

Question 8

Admission to Cultural Events and Entertainment Events

Answer 8

Place of supply is where the event is taking place

Question 9

Other Services Supplied to Non-EU Recipients

Answer 9

Applies to B2C only. Includes transfers of copyrights, patents and trademarks, advertising services and services of consultants, engineers, lawyers and accountants. PoS is where the customer belongs

Question 10

Reverse Charge

Answer 10

A reverse charge is where the customer has to account for the VAT on their VAT return in the output tax box to recover it as input tax