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Introduction to VAT and international services

When dealing with VAT and cross-border services, one of the key considerations is the place of supply.

A supply of services is only within the scope of UK VAT when it takes place within the UK. Therefore, where cross-border transactions are involved, it is important to have rules that provide clarity on whether a transaction is to be treated for VAT purposes as taking place within the UK or elsewhere.

There is a ‘general rule’ for the place of supply of services. The default position is that supplies of services will be treated under this general rule. The general rule (from a UK perspective) is that business-to-business (B2B) supplies of services are subject to VAT