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Posted Fri, 20 Nov 2020 10:48:10 GMT by JHK Kee
A UK vat registered business is pricing a kitchen for an ROI vat registered customer. Can you advise if this comes under the general b - b rule or is this type of work classed as land related and the vat treatment is different. Also if they install the kitchen in the ROI is this outscope the scope of UK vat and are they required to register for ROI vat?
Posted Fri, 20 Nov 2020 17:49:17 GMT by Trevor Steel
Notice 741A, section 7, details the "land related services" exception to the general place of supply rules. But if it's a B2B supply, the place of supply would be the ROI regardless of whether it was a land related service or fell under the general B2B rule. Currently, you would not need to register for VAT in the ROI. You would invoice without VAT, and your customer would be liable to operate the reverse charge - meaning that they would calculate the VAT due and pay it over to the ROI tax authorities. They would then also reclaim that VAT, to the extent that they would have been able to if the supply had been made by a ROI company. Please note that my opinion above is based on the current position. It does not take account of any changes which may arise following the end of the Brexit transition period on 31/12/2020.
Posted Thu, 26 Nov 2020 17:47:23 GMT by HMRC Admin 10
Hi

The place of supply rules contain defauly or 'general' rules.

One for supplies to business customers (B2B) and one for supplies to consumers (B2C).

However, there are a number of exceptions to the general rules.

The rules can be found in section 6 of VAT Notice 741A: place of supply of services:

Place of supply of services (VAT Notice 741A)

The special rule for 'land related' services can be found in section 7.

This section offers further information and examples of what land related services are.

Unfortunately, we would not be able to advise how to account for VAT as this is a business decision, that the VAT registered business will need to make.

If the kitchen was to be installed, I would now invite you to  read section 11 of VAT Notice 725 :

Installed or assembled goods

Thankyou.

Regards.

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