Big changes to the place of supply rules came into effect from 1 January 2010. Spanning through to 2015 they will affect certain specified services. 

All businesses providing services should ensure that they are aware of the new rules and the possible impact on their own supplies - and on those services that they purchase from outside the UK. Internal IT support systems will also need to be ready to capture the necessary reporting data.

What are the main changes?

• the new basic place of supply will be where the customer is established for business to business purposes
• the new basic place of supply will remain where the supplier belongs for business to consumer purposes
• the reverse charge becomes due on all services received from a non-UK supplier except those that are exempt
• UK businesses that have non-business and business activities are required to account for the reverse charge on all services received as if they are in business
• from 1 January 2015 telecoms, electronically supplied services and broadcasting will also become where the customer belongs for business to consumer, but will still be subject to use and enjoyment provisions
• from 1 January 2010 all businesses will be required to complete an EC Sales List for services supplied to EC Businesses.

Who will be affected by the changes?

• Businesses supplying services to overseas businesses.
• Businesses receiving services from overseas businesses.
• Businesses supplying goods to other EC countries.
• Businesses that want to reclaim VAT incurred in another EC country.

Want to know more?

As with all changes there are exceptions to the new rules. Contact one of our consultants for clarification on a specific situation or take-advantage of one of our in-house dedicated seminars to make sure you are ready with all the information you need to help you, or your clients, manage these changes. Find out more.