Supply of Services to EU Countries

The supply of services to customers in the EU is complicated with new rules issued in 2010 regarding where the place of supply is deemed to be, and where it will be liable to VAT.

These complex rules are still subject to further change so please refer to the Finance Office if you have any doubts.

PLACE OF SUPPLY

If the place of supply is in the UK, then UK VAT is charged according to the normal rules.

If the place of supply is in another EU member country then no UK VAT is charged (it is zero rated), and the customer has to account for any VAT according to their country’s VAT rules. This is called the ‘Reverse Charge’.

NON-BUSINESS CUSTOMERS (B2C)

For customers that are not in business (B2C), the place of supply is ALWAYS in the UK and the University should charge VAT according to the normal rules.

BUSINESS CUSTOMERS (B2B)

For customers who are in business (B2B) and we have their valid VAT number, then the general rule is that the place of supply is where the customer belongs, and the University should not charge VAT (it is zero rated). The customer will charge themselves VAT under the rules of the country of their residence, under the Reverse Charge rules.

However, there are the following exceptions to the place of supply rules for B2B supplies, and the University should not charge UK VAT (it is zero rated) even when the business customer is in another member state:

  • The place of supply of land related services (including conference facilities) is where the land is situated
  • The place of supply of restaurant and catering services is where the service is carried out
  • The place of supply of admission to events is where the event is taking place
  • There are a number of other exceptions. However, these should not affect the University.

 
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