<p>VAT – SUPPLIES OF SERVICES TO NON-BUSINESS CUSTOMERS</p><p>January 2011 brought in changes for Business to Non-Business (B2C) transactions within the EC.</p><p>A B2C supply of services is where the services are supplied by a VAT registered business to one of the following:-</p><p> A private individual.  A charity, government department or other body which has no business activities.  A person who receives the supply of services wholly for private purposes.</p><p>Customers inside the EU</p><p>From 1st January 2011, the place of supply for most B2C services within the EU is where the business is VAT registered (i.e. UK). In many cases this will mean that a UK business will need to charge UK VAT on services supplied to B2C customers within the EU.</p><p>There are exceptions to this ‘general’ rule and these are as follows:-</p><p>Land Related Services including:</p><p> Construction Services (i.e. bricklayer, carpenter, plumber, etc.).  Professional Services such as architect, surveyor, property managing agent.  Hotel accommodation.</p><p>Cultural, artistic, sporting, scientific educational, training, entertainment or similar event (including trade fairs and exhibitions)</p><p> Ancillary services relating to such activities, including the services of organisers of such activities.</p><p>For these particular exceptions, if the services are performed elsewhere in the EU, then local VAT may need to be charged and a VAT registration may be required in that EU country if the annual value of supplies exceeds the VAT registration limit. Remember in some EC countries, such as France and Italy, the registration limit is NIL.</p><p>Customer outside the EU</p><p>Basically the same ‘general’ rules apply to non EU B2C customers as EU customers.</p><p>However, this general rule does not apply to the following services:-</p><p> Transfers and assignments of copyright, patents, licences, trademarks and similar rights.  The acceptance of any obligation to refrain from pursuing or exercising (in whole or in part) any business activity or any rights within the above paragraph.  Advertising services.  Services of consultants, engineers, consultancy bureaux, lawyers, accountants and similar services; data processing and provision of information (excluding any services relating to land).  Banking, financial and insurance services (including reinsurance), other than the provision of safe deposit facilities.  The provision of access to, and of transport or transmission through, natural gas and electricity distributions systems and the provision of other directly linked services.  The supply of staff.  The letting on hire of goods other than means of transport.  Telecommunications services.  Radio and television broadcasting services.  Electronically supplied services, e.g. supply of music, films and games.</p><p>The last four items on the above list do not apply if the overseas person enjoys the services in the UK. In this case UK VAT is chargeable.</p><p>As usual, if any specific queries arise we shall be pleased to help out.</p>