This page has been updated because the Brexit transition period has ended. Goods delivered from the UK The rule for working out the place of supply of freight transport is if you supply services to a: non-business customer, the place of supply is where the transport takes place. Such sales are now deemed to have a place of supply of the customer (was place of supplier). If the customer isn't a relevant business person, it's a UK supply Jersey isn't an EC member state and the supply of a website is an electronically provided … VAT Notice 744B: freight transport and associated services has more about the VAT rules for freight transport services. The services of a driver, pilot, operator or crew come under the general rule. Instead, the business customer will self accountfor the VAT in their State. So unless you have an office or base there and are (or need to be) registered as a GST trader. Which country’s VAT rules to use when charging VAT on services If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules . Regardless of the value, you must pay VAT on the item. If the supplier’s total supplies of goods to un-registered customers in the UK in the current calendar year exceed this, then the supplier must register for VAT in the UK and charge UK VAT on its UK sales. Postponed VAT Accounting What Does It Mean? Correct VAT to apply on services provided in Jersey for UK registered customer, Explore our AccountingWEB Live Shows and Episodes, View our 2020 Accounting Excellence Firm Awards Finalists. Goods in this context means movable items, not fixed installations. A new exception (from 1 January 2015) relates to electronically supplied services (e.g. If a foreign company is not making taxable supplies in the UK but is incurring UK VAT on local goods or services, then the VAT may recovered through a VAT reclaim. For further information about this, please refer to the HMRC website. I believe you are correct. Jersey GST is totally independent (they are not in the EU and not part of the UK tax system) and do their own thing and the tax is raised on the island only. Thank you for replaying. Jersey. The rule for working out the place of supply of intermediary services is if you supply intermediary services to a: non-business customer, the place of supply is the same as the place of supply of the service you’re arranging. Jersey residents who purchase goods online and have them delivered to Jersey are often charged the UK VAT 20%. The location of the business customer to whom the services are supplied can be: 1. where he or she has established their business 2. where that person’s fixed establishment is located 3. or 4. in the a… If any GST is due there, there is a reverse charge system in place for taxable services supplied but that is not your concern; you do not need to charge GST. 30 days for other vehicles, these come under the general rule. Sometimes it is collected and retained by the major retailer. An increasing number of countries are taxing VAT or GST on electronic services supplied from abroad to consumers. Sometimes this is remitted to Her Majesty’s Revenue and Customs in the United Kingdom (“HMRC”). If you belong in the UK and your customer is in an EU country, you may need to register in that country. Such supplies are said to be ‘outside the scope’ of both UK and EC VAT". These are mainly intangible services that include advertising, intellectual property rights, legal services and accountancy. A business can only have one business establishment, but can have several fixed establishments. Generally VAT number equals business and no VAT number equals consumer. They also have a trusted trader status where GST is not charged on import but there is no reclaim on the GST return (which speeds up imports and means food for example is not sat rotting at the quayside). Irish suppliers will not normally charge Irish VAT on services to a business established outside Ireland. See About VAT on Digital Products and Services sold by Amazon for more information on VAT on digital products and services. In revenue collection terms, VAT in the UK is a very significant tax indeed. UK VAT may need to be charged on services performed in the Islands or to clients based in the Islands, depending on the nature of the service supplied. The first step is to establish the value in the VAT return period of all bought-in services from outside the UK. So SERVICES are outside the scope so you don't charge vat but you DO include the sales value in Box 6. You’ve accepted all cookies. For the service element the same applies you do not need to charge as you supplied the service there. View more information on other countries, or find out more about VAT. To help us improve GOV.UK, we’d like to know more about your visit today. If the place of supply of your service is not in the EU, you do not have to charge EU VAT but you should include the sale in box 6 on your VAT Return. The UK VAT is then calculated and entered as if it were output-tax (in Box1) It is then also entered as if it were input-tax (in Box 4) In a fully taxable UK business the net effect in terms of VAT payable should be ‘nil’ If it takes place outside the UK, then it falls outside UK VAT rules. You cannot charge GST unless you are a Jersey business. This situation includes costs incurred in the repair of goods sent out of Jersey and holidays booked through UK or foreign operators or companies to be taken out of Jersey. If, for example, your company has its head office in the UK, but has a French subsidiary that supplies services to local businesses, then the French company belongs in France for VAT purposes. There are various rules that apply, depending on: whether you’ve more than one business location, the place where your business or your business customer ‘belongs’. GST taxation was introduced on 6 May 2008, at a rate of 3%. Jersey's regulations mirror the provisions of the EU VAT Directive on the place of supply of services so that businesses don't get taxed twice - ie by paying both VAT and GST. The rule for working out the place of supply of work carried out on goods is if you supply services to a: business customer, the place of supply is the place is where the customer belongs, non-business customer, the place of supply is where you physically perform the work. There are special arrangements for charging VAT on the international supply of electronic services. If you have a business establishment in the UK and establishments in other countries, you must look at what each establishment does in terms of supplying services. The VAT rate to be applied will be dependent on the goods being supplied. Work includes any kind of physical service, including valuation, processing, manufacturing, repairs and maintenance, and alterations or finishing. Jersey. VAT for consumers on GOV.UK You will be charged GST on the total cost (including freight) of goods bought in the UK when it is more than £135. As of 2015 the EU applied the Mini One Stop Shop which enables trader to register in one country and report and remit VAT for the entire EU. You must check with the tax authority in that country to find out how to treat the services you’re supplying. Global VAT Compliance files EU VAT MOSS returns in various jurisdictions throughout the EU. Machinery installed within a building is not considered to be land or property. However, that is not always the case. However the accounts payable department of the customer stated we need to re invoice applying 5% of Jersey GST. Find out which country’s VAT rules to use when supplying services abroad. We use this information to make the website work as well as possible and improve government services. The B2B place of supply rule is that the supplies take place where the customer belongs (where it is established), i.e. For services, the general rule for B2B supplies is that the place of taxation is the place where the business receiving the services is … VAT paid on services supplied in the UK or abroad cannot be refunded. If you’re supplying services to non-business customers outside the UK, you may not need to pay UK VAT. If you’re an intermediary, then the place of supply of your services depends on whether your customer is in business. These special rules only apply to the transport itself. But for some supplies, you may need to register and account for VAT in the country of supply. A means of transport is something that can be used for transporting passengers or goods, and includes: It does not include freight containers, static caravans or racing cars. Which Tax Code to use - well Zero Rated Income and Exempt would both work as they appear in Box 6 and don't result in a vat charge. The New Brexit Deal: What Accountants Should Know. The ‘place of supply’ is the place where you make a supply and where you may be charged and pay VAT. Something we will need to really get a handle if we crash out of the EU. For most supplies of services, the place of supply is decided by what’s known as the ‘general rule’. websites, software, e-books) to an individual or non-business organisation inside of the EU (but outside of UK). With services, deciding the place of supply can be complicated. If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. How to get back control of self assessment, The TaxCalc Survival Guide to Self Assessment, Exports to Europe - should accountants be advising, Sunak eyes corporation tax hike in March Budget, Look after your team as tax season takes its toll, Automate workflows to ease tax busy season. Jersey imposes the VAT in the name of General Sales Tax. Don’t include personal or financial information like your National Insurance number or credit card details. You need to charge VAT if it's a UK supply. They’re often called brokers or agents, and their customer is the person or organisation who they supply their service to. But some supplies are subject to special rules that will affect their place of supply. Work on goods The place of supply is where the goods are when the work is physically carried out. If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. This is the case even if your head office belongs in the UK for supplies that it makes in the UK. This can be the supplier or the buyer of the goods or services, or both. The important thing is where the service has been supplied rather than who or what it was supplied to. In some cases, the place of supply is determined by what service is supplied, rather than where the supplier or the customer belongs. Currently, GST is charged at the rate of 5%. The place of supply of admission to an event is where the event takes place, wherever the customer or supplier is located. We use cookies to collect information about how you use GOV.UK. For VAT purposes, this normally depends on whether they are VAT registered or not. This includes all services connected to cultural, artistic, sporting, scientific and educational events, or entertainment. If any GST is due there, there is a reverse charge system in place for taxable services supplied but that is not your concern; you do not need to charge GST. I will escalate it to customer AP supervisor as it might be some internal staff incompetence. The provisions of the Principal Directive are broadly reflected in UK domestic VAT law. Special rules apply for work carried out on goods. It will take only 2 minutes to fill in. Total online retail spending online grew by 33.4% in 2007 to a record £10.9bn and UK online sales are predicted to reach £28.1bn by 2011 – 8.9% of all retail sales. The supply is outside the scope of UK VAT. See How to purchase as a VAT registered customer within the EU if you want to use your VAT registration number when purchasing from Amazon. A UK business supplying digital services to UK customers should account for any UK output VAT due via the UK VAT return. Conversely, where a French business supplied services to a UK customer then normally the supplier would apply French VAT to his invoice. Don’t worry we won’t send you spam or share your email address with anyone. Generally speaking, supplies of goods located in Ireland at the time of supply are subject to Irish VAT. The VAT liability of legal services should be relatively straightforward. Under this logic, a business that is not VAT registered will count as a consumer. We issued an invoice addressed to UK central finance office for the labour and equipment without any VAT based on  place of supply rule outside of scope of EU and UK VAT. All content is available under the Open Government Licence v3.0, except where otherwise stated, Which country’s VAT rules to use when charging VAT on services, Broadcasting, telecommunications and e-services, The general rule and the place of belonging, Registering for VAT under special rules for place of supply, charge and account for VAT according to UK VAT rules, special arrangements for charging VAT on the international supply of electronic services, VAT Notice 708: buildings and construction, VAT Notice 744B: freight transport and associated services, supplying services to non-business customers outside the UK, Exports, sending goods abroad and charging VAT, Place of supply of services (VAT Notice 741A), VAT rules for supplies of digital services to consumers, EU country codes, VAT numbers and enquiry letters for EC Sales Lists, How to report EU sales made on or before 31 December 2020 for VAT, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. A list of EU VAT contacts can be found in Notice 725. If the legal services are provided by UK based solicitors to UK resident customers, the services will be liable to VAT at the standard rate, where they do not relate to land that is located overseas. The VAT treatment of this specific sub-category of services – electronically supplied services – has been subject to much change and coverage over the past year, particularly in respect of the MOSS scheme, but it is helpful to understand where these services … UK VAT refunds. For VAT purposes any goods supplied to the Channel Islands are regarded as exports and may be zero-rated, T0 by default, subject to the normal HM Revenue & Customs (HMRC) conditions. A very important distinction for EU VAT is whether someone is a consumer or or whether they are business. You will need to contact the foreign tax authority in that country for advice. Currently, VAT on goods and services acquired in France by a company established in another Member State of the EU for … We’ll send you a link to a feedback form. Working out the place of supply when you’re hiring out a means of transport depends upon the length of time that you hire out the vehicles. Check how the new Brexit rules affect you. Under the place of supply rules, this is treated as a supply made where the supplier belongs, i.e. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). If the customer is a non-business customer then most supplies relating to events are subject to VAT where they’re carried out. Since 1984, there has been the possibility for legal services to be outside the scope of UK VAT when provided to a customer resident/established outside of … If you’re supplying services relating to land and property, the place of supply is always where the land or property is located. The UK was required to introduce a VAT system pursuant to its accession to what is now known as the European Union on 1st April 1973. What is correct? Land and property includes the land itself plus any buildings or other structures, (including installations such as oil production platforms). VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). Ex gratia payments to jobbing gardener-Taxable? You can change your cookie settings at any time. VAT is charged in accordance with the local legislation in each country or region. The MOSS VAT return is separate to and in addition to the normal UK VAT return. The United Kingdom is a member of the EU and, as a member state is obliged to apply VAT to a range of goods (see European Union value added tax). Customs in Jersey cannot process VAT refunds on goods bought in the UK. These include such services as: entertainment and cultural performances - including sports events, the right to attend exhibitions, conferences, meetings or seminars, ancillary services, such as payments for cloakrooms or similar facilities. The general rule for working out the place of supply of services, apart from those covered by special rules is if you supply services to a: business customer, the place of supply is the place where the customer belongs, non-business customer, the place of supply is the place where the supplier belongs, your business establishment (your head office or only office) is in the UK, and you have no fixed establishments (subsidiary offices or agencies) in other countries, your business establishment is in the UK and you have fixed establishments in other countries, but the UK office is the one mainly concerned with supplying services, your business establishment is not in the UK but you have a fixed establishment here which is the one where you supply services from, you do not have either a business or fixed establishment in the UK or elsewhere, but your business is a corporate body (for example, a limited company) which is registered in the UK, you do not have a business or a fixed establishment in the UK, or anywhere else, but the UK is your usual place of residence. The services supplied by MCL to DPSL are business-to-business (B2B). For short term hires the place of supply is where the vehicle is physically given to the customer. We (as UK VAT registered ltd) installed commercial refrigerators for UK registered retail chain shop in Jersey. VAT up to UK’s distance selling threshold (£70,000). For supplies of business to business services (B2B), the place of supply is the place where the business receiving the services is established. For freight transport the place of supply varies according to whether the customer is in business. Jersey GST is totally independent (they are not in the EU and not part of the UK tax system) … The system of VAT in the EU is now governed by Council Directive 2006/112/EC of 28th November 2006 on the Common System of Value Added Tax (normally referred to as the Principal Directive). If you are supplying services to a business customer in another European Union (EU)Member State you should do the following: 1. obtain the business customer’s Value-Added Tax (VAT) number and confirm its validity 2. insert the customer’s VAT number on the invoice and retain records of the transaction 3. issue an invoice indicating reverse chargewill apply 4. obtain a letter from the tax authorities if a business customer is a new business and a VAT number is not available 5. establish if the supply is exempt in th… For passenger transport the place of supply is where the transport takes place. If the UK and the EU are unable to reach a deal and the UK makes a ‘no-deal’ exit, the VAT refund procedure would change immediately. They confused me as I dealt before with Gibraltar (the same rules I assume) and did not charge VAT. For imports then the Jersey authorities will apply the GST on import (as here with VAT on goods from the USA). 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