UK Changes VAT Policy on Land-related Services

HMRC have issued Brief 22/12 on the VAT place of supply rules for land-related services following EU-wide discussions. The Brief explains HMRC's changes to its current policy on exhibition stand rental, warehousing, storage, and airport lounge access. Taxand UK explores this Brief and its impact on UK and non-UK businesses.

The renting of exhibition stands with accompanying services - like security, power, and publicity materials - will now fall under the general place of supply rule instead of being treated as a supply of land-related services. Thus businesses supplying packages of UK stand-rental with other services should no longer charge UK VAT on their fees unless the customer is in the UK. Although this change in policy does not directly affect the treatment of stand rental in other EU countries, businesses may want to review if they should continue to be charged VAT on stand rental in other EU countries.

The rules on storage and warehousing have also changed so that where a supplier agrees to store goods in the UK - without granting the customer a specific area for the customer's exclusive use - the supply will now also fall under the general place of supplies rule.