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An exception is to be introduced to the usual place of supply rules.
An exception is to be introduced to the usual place of supply rules. It will treat supplies as taking place where they are used and enjoyed rather than in the country of the recipient.
UK service providers will have to charge VAT at the standard rate on their repairs, irrespective of where the provider of the insurance cover for the goods is located. The change is aimed at countering avoidance involving the provision of repair services to insurers outside the EU.
HMRC has published a draft statutory instrument, VAT (Place of Supply of Services: Exceptions Relating to Supplies Made to Relevant Business Person), to effect the change (tinyurl.com/hsr5r49).
