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VAT place of supply for insurance repair services

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From 1 October 2016, supplies of repair services carried out as the result of an insurance claim made to an insurer located outside the EU will be treated as taking place where they are effectively used and enjoyed, rather than where the provider of the insurance cover is based. This means that UK repairers will have to charge VAT at the standard rate to insurers based outside the EU.

HMRC has issued Revenue and Customs Brief 15/2016: VAT – use and enjoyment of insurance repair services, explaining the changes introduced by the VAT (Place of Supply of Services: Exceptions Relating to Supplies Made to Relevant Business Person) Order, SI 2016/726. 

Issue: 1326
Categories: News , VAT