Value Added Tax Act 1994 section 16

Other services provided to recipient belonging outside United Kingdom and the Isle of Man

Section 16 of Schedule 4A sets out the place of supply rules for certain specified services provided to non-business recipients who belong outside the United Kingdom and the Isle of Man, treating those supplies as made where the recipient belongs rather than where the supplier belongs.

• Where specified services are supplied to a non-business recipient who belongs outside the UK and the Isle of Man, the supply is treated as made in the recipient's country, meaning it falls outside the scope of UK VAT
• The rule applies to a wide range of professional and intangible services, including consultancy, legal, accounting, advertising, and banking or financial services
• It also covers transfers of intellectual property rights, supply of staff, hiring out of goods (other than means of transport), and access to gas, electricity, heating or cooling networks
• Certain exclusions apply: services relating to land are excluded from the professional services category, safe deposit facilities are excluded from financial services, and means of transport are excluded from the hiring of goods

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