The UK based taxpayer Gray & Farrar International Ltd (G&F) provides exclusive matchmaking services to customers all over the world. Under the basic place of supply rules the place of supply of services to a non-taxable person (Article 45 of the VAT Directive) shall be the place where the supplier has established their business. The relevant exception in this case is Article 59(c). This shifts the place of supply to where the place where the non-taxable person (the customer) who is established or has his permanent address or usually resides outside the Community. Article 59(c) applies this to:
the services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as data processing and the provision of information;
This is enacted in UK legislation in VATA 1994 in Schedule 4A 16(2)(d). This has been changed as a result of Brexit – this case is about pre-Brexit supplies.
Source KPMG
