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Place of supply of services connected to land: HMRC guidance

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Changes to HMRC’s published policy on the place of supply of stands at exhibitions, storage of goods and access to airport lounges are outlined in Revenue & Customs Brief 22/12.

The changes follow discussions with the European Commission and other EU member states in an effort to agree the uniform application of Article 47 of the EU VAT Directive. Changes to the place of supply rules with effect from January 2010 and January 2011 had highlighted differences in the treatment of certain supplies in various member states, HMRC said.

Businesses that have been following HMRC’s earlier policy may continue to do so for up to three months from 2 August. VAT declared in accordance with the earlier policy, that would not have been due under the new interpretation, will not be eligible for a refund unless (a) it can be demonstrated that the customer has not recovered the VAT charge and (b) any VAT repaid by HMRC will be refunded to the customer. ‘If that is not the case then HMRC will consider the defence of unjust enrichment in deciding whether to make a repayment of the VAT declared,’ the department said.

Issue: 1135
Categories: News , Indirect taxes , VAT