cross border vat changes 2010 - HM Revenue & Customs

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3.5.4 Are ticket agents to be treated as ancillary to an admission or as intermediaries? HMRC’s view is that the services of ticket agents will be treated as an intermediary service and will fall under the new general rule when supplied to business customers, but for non-business customers the place of supply will be where the event takes place. This is an issue being discussed with other Member States and the European Commission with a view to achieving consistency of treatment across the EU. 3.5.5 How should organisers’ services be treated? The services of organisers are supplied where the person carries out their role. This is not necessarily in the same place as where the event is held. This treatment will remain unchanged on 1 January 2010. From 1 January 2011 B2B supplies of organisers’ services will fall under the general rule. 3.5.6 What are similar services? A supply is similar to cultural, artistic, sporting, scientific, educational, or entertainment services if it is in connection with a meeting or event and the supplier is required to attend in order to carry out their obligations. 3.6 RESTAURANT AND CATERING SERVICES 3.6.1 What is the place of supply of restaurant and catering services? Restaurant and catering services will treated as made in the country in which they are physically carried out. There will be separate rules for restaurant and catering services carried out on board ships, planes and trains during EU journeys. 3.7 RESTAURANT AND CATERING SERVICES ON BOARD SHIPS, PLANES AND TRAINS 3.7.1 What is the place of supply of restaurant and catering services on board ships, planes and trains as during part of transport in the EU? The place of supply of restaurant and catering services during part of a transport within the EU will be the place of departure. This will mirror the rules for supplies of goods for consumption on board. There will be no change to the existing treatment in the UK for these supplies. 3.8 USE AND ENJOYMENT 3.8.1 How are the use and enjoyment provisions changing? The use and enjoyment provisions, as applied by the UK, remain unchanged after 1 January 2010. They will still apply to the hire of goods,
telecommunications, television and radio broadcasting and electronically supplied services to business customers. 3.8.2 At what stage does use and enjoyment apply? The use and enjoyment takes place where a service is consumed. Whilst this will normally be at the final stage of supply (in particular for telecoms, broadcasting, and e-services), it can occur at earlier stages in the supply chain. 3.8.3 How should use and enjoyment be measured? Determining the level of use and enjoyment will depend very much upon the exact circumstances surrounding the particular supplies. It is important to identify where the customer is physically using the service and where the benefit is felt. 3.8.4 How do other Member States apply the use and enjoyment provisions? From 1 January 2010 Member States may, if they choose, apply use and enjoyment provisions to general rule services, hire of means of transport, EU to non-EU services other than electronically supplied services to non-business customers. We are aware that there is concern amongst UK business about the inconsistency of application, both in terms of scope and interpretation. 3.9 INTERMEDIARIES 3.9.1 How is the place of supply of intermediary services changing? The services of an intermediary, i.e. where a person arranges or facilitates a supply between two parties, will fall under the general rule from 1 January 2010 when it is performed for a business customer. The place of supply of B2C intermediary services will remain unchanged, i.e. in the same place as the underlying supply that is being arranged. 3.10 TRANSPORT OF GOODS 3.10.1 How is the place of supply of the transport of goods changing? The place of supply of the transport of goods, including intra-community transport of goods, made to business customers will fall under the general rule from 1 January 2010. For B2C supplies, the place of supply will remain where the transport takes place, in proportion to the distances covered within each country. However, the place of supply B2C supplies of intra-community transport will be the place of departure.
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