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Place of supply of services ― hiring goods and means of transport


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
tag-icon Brexit

Place of supply of services ― hiring goods and means of transport


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
tag-icon Brexit
imgtext

This guidance note looks at the special place of supply of services rules that apply to the hiring of goods, including means of transport for VAT purposes.

For an overview of VAT and international services more broadly, see the International services ― overview guidance note.

For in-depth commentary on the legislation and case law, see De Voil Indirect Tax Service V3.188.

What is the place of supply when hiring goods including means of transport?

For practical purposes, the place of supply of hired goods, including means of transport is where those goods are ‘used and enjoyed’. For example, a hire car that is exclusively used and enjoyed outside the UK will not be subject to UK VAT irrespective of where the supplier of the hire car or its customer ‘belongs’.

Where the use and enjoyment of hired goods is both inside and outside the UK an apportionment needs to be carried out based on the extent to which the goods are used and enjoyed in the UK. Only

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  • 23 Nov 2022 09:41

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