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SCOPE OF VAT |
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Exemptions - gaming and bingo participation fees See VM ¶464 With effect from 27 April 2009, exemption from VAT will be extended to apply to participation fees for playing bingo and other games of chance. Place of supply - change to basic rule for services See VM ¶570 ¶575 As part of an EU-wide initiative which is intended to ensure that, where possible, VAT is due in the country where services are consumed, i.e. where the customer is established, the place of supply of services rules are changing for cross border services. With a few exceptions, from 1 January 2010 the new basic rule for business to business supplies of services to overseas businesses will be that VAT is due in the place where the customer is established. For supplies to non-business customers the place of supply remains unchanged, i.e. where the supplier is established. EU sales lists for services See VM ¶570 As previously announced, a package of EU measures to simplify and modernise the VAT system for cross border trading is to come into force on 1 January 2010. As part of this, the EU sales list regime is to be extended to the supply of services where the reverse charge applies (¶9835). HMRC have announced that secondary legislation will be introduced to require affected businesses to submit calendar quarterly sales lists from 1 January 2010. Place of supply - cultural, artistic, sporting, scientific, educational and entertainment services See VM ¶644 From 1 January 2011, for supplies to business customers only, most supplies of cultural, artistic, sporting, scientific, educational, entertainment and similar services will be taxed where the customer is established, under the new general place of supply rule. Supplies to non-business customers are taxed where the service is performed. Supplies of admission to cultural, artistic, sporting, scientific, educational and entertainment events will remain taxable where the event takes place. Place of supply - valuation and work on goods See VM ¶646 From 1 January 2010, valuation and work on goods supplied to business customers will be taxed where the customer is established under the new general place of supply rule (¶570). Place of supply - hire of means of transport See VM ¶626 Currently the place of supply of hire of means of transport for supplies to business and non-business customers is where the supplier is established. From 1 January 2010, there will be a distinction between short-term hire (no more than 30 days or 90 days for vessels) and long-term hire. For short-term hire, the place of supply will be where the vehicle is put at the disposal of the customer. For long-term hire, the place of supply will be subject to the new basic rule i.e. the place where the customer is established. However, from 1 January 2013, the place of supply of long-term hire to non-business customers will be where the customer is established (except for long-term hire of pleasure boats to non-business customers which will be treated as supplied where the boat is actually put at the customer’s disposal if the supplier has an establishment there). Place of supply - ancillary freight transport services See VM ¶623 From 1 January 2010, when supplied to business customers, the place of supply of ancillary freight transport services will be where the customer is established. Supplies to non-business customers will continue to be treated as supplied where performed. Place of supply - restaurant and catering services See VM ¶614 From 1 January, restaurant and catering services will be treated as supplied where they are physically performed. For services carried out on board ships, aircraft and trains as part of transport within the EU, the place of supply will be the place of departure. Place of supply - transport of goods See VM ¶616 From 1 January 2010, the place of supply of supplies of transport of goods to business customers will be where the customer is established.
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