VAT place of supply rules change

The place of supply rules for VAT changed on 1 January 2010 – now VAT is payable in the country in which the customer is established, rather than the supplier. Supplies to private individuals will follow this approach from 1 January 2013.

As a result of the BVRLA's lobbying efforts, all rental agreements lasting 30 days or less will remain unaffected. In practical terms, this means that rental staff will not be required to check the VAT status of each customer in order to decide whether to issue a zero-rated VAT invoice.

In conjunction with HM Revenue and Customs, the BVRLA has produced a fact sheet on the new rules, particularly how they affect agreements lasting longer than 30 days.

VAT Place of Supply Rules (Fact Sheet 579) can be downloaded by BVRLA members here...

source: BVRLA