Although there are exceptions, most supplies of services are covered by the general rule which states that where you are suppling services to a business customer (B2B) the place of supply is where the customer belongs, whilst the place of supply to a non-business customer (B2C) is where the supplier belongs.
Following the general rule, a UK business charges UK VAT on services provided to non-business customers (B2C), but UK VAT is not charged on services supplied to business customers (B2B) as these are outside the scope of UK VAT.
Exceptions to the general rule include:
- Services directly related to land
- Services relating to cultural, artistic, sporting, scientific, entertainment, and educational activities
- Restaurant and catering services
- Work carried out on goods
These services are deemed to be supplied where performed regardless of where the customer is based.
B2C supplies of a professional, technical, financial, or intellectual nature are another exception to the general rule. They are outside the scope of UK VAT when the customer resides outside the UK.