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VAT Information Sheet 07/05, November 2005

This Information Sheet should be read in conjunction with Notice 741 “Place of supply of services”.

1 Introduction

1.1 What is this Information Sheet about?

This Information Sheet clarifies the VAT treatment in relation to the place of supply of legal services, in particular legal services provided to individuals who do not have a right or permission to remain in the UK such as asylum seekers, following recent discussions with the Legal Services Commission and the Law Society. It does not represent a change in HMRC policy.

2 General rule

2.1 In certain cases, the place where a customer belongs determines where services are deemed to be made. This is the case in respect of supplies of general legal services provided to individuals who belong outside the EU. Individuals receiving such supplies in a non-business capacity are treated as belonging in the country where they have their usual place of residence. For VAT purposes, individuals can only have one usual place of residence