VAT on Storage

We provide job for a Cyprus company in the UK continental shelf. We had a storage in the land to store the equipment and material use for the offshore job. Is the storage fee subject to VAT in this respect?

Hi,

Whether VAT is charged on a supply is determined by the place of supply rules. If the supply is of storage of goods in a property without a right to a specific area for the exclusive use of the customer then the service is not direcly related to land and so the general rule of services treatment will apply. You can see guidance here:

Land related services

The place of supply rules for services

If the storage involves a right to a specific area for the exclusive right of the customer then the service is directly related to land and so the place of supply of the service takes place where the land is siuated. If this takes place in the UK then the supply will be standard rated. Please see the guidance below:

VATLP17550 - Provision of storage facilities (Item 1ka): VAT liability of supplies of storage - new rules introduced

Thank you.