The spot of supply is the spot where a supply is made and where VAT might be charged and paid. With administrations, choosing the spot of supply can be muddled. There are different principles that apply, contingent upon: Whether you have more than 1 business area The sort of administration you give The spot where your business or your business client “has a place”
In the event that you are in the UK and the spot of supply of your administration is in the UK, you charge and record for VAT as indicated by UK VAT rules. In the event that you are in the UK and the spot of supply of your administration is in another EU nation, you don’t pay UK VAT. Be that as it may, for a few supplies, you may need to enlist and record for VAT in the nation of supply. You should check with the expense power in that nation to discover how to treat the administrations you are supplying.
On the off chance that the spot of supply of your administration is not in the EU you don’t need to charge EU VAT yet you ought to incorporate the deal in box 6 on your VAT Return
What is an administration?
For VAT purposes an administration is any business movement other than a supply of merchandise. Commonplace administrations incorporate the administrations of food providers, mechanics, handymen, bookkeepers, specialists, and experts and the enlisting (other than contract buy) or renting of merchandise. Electronically supplied administrations, including digitized merchandise conveyed online and the physical supply of modified programming are supplies of administrations for VAT purposes. Benefits likewise incorporate abstaining from accomplishing something and the giving and surrendering of a privilege. Contract work, that is the giving over by a contractual worker to a client of portable made or amassed by them from merchandise depended to them by the client, is additionally viewed as an administration.
Spot of supply of administrations (General guidelines)
There are two general spot of supply tenets, contingent upon whether the beneficiary is a business or purchaser: 1. For supplies of Business to Business administrations (B2B), the spot of tax collection is the spot where the business accepting the administrations is built up (opposite charge). The area of the business client to whom the administrations are supplied can be the place they have built up their business, where that individual’s settled foundation is found or, without such place of business or an altered foundation, the spot where he or she has a changeless location or regular spot of habitation Unless secured by a special case, the position is as per the following: Service suppliers in the State must not charge VAT when supplying administrations to a business client built up outside Ireland. (B2B) Businesses that get administrations from a supplier outside Ireland won’t be charged VAT by the supplier of those administrations, yet the beneficiary will be required to represent Irish VAT unless the administrations concerned are excluded in Ireland (and the business has told its supplier that such administrations are absolved from Irish VAT) (B2B) For supplies of Business to Consumer administrations (B2C), the spot of tax assessment is the spot where the supplier is built up.”