VATPOSTR3300 - Freight transport: outline

Liability

Once the place of supply has been determined and that place is found to be the UK the liability of the supply will need to be considered. Guidance on liabilities can be found in the VAT Transport (VTRANS) Manual and VAT Notice 744B. To read more about the place of supply rules you should read VATPOSS.

Place of Supply from 1 January 2010

From 1 January 2010 a new “general Rule” for the place of supply of services came into force. This provided for the place of supply of most services to be the place where a customer who is in-business belongs for the purpose of receiving the supply. The supply of transportation and ancillary services falls under this “general rule”.

The place of supply of freight transport services to a person not in-business and the making of arrangements for such a supply, are supplied where the transport takes place and (in a case where it takes place in more than one country) in proportion to the distances covered, irrespective of where the supplier and recipient belong.

Whereas ancillary services and the making of arrangements for such supplies are supplied where the ancillary service is performed,irrespective of where the supplier and recipient belong.