Value Added Tax Act 1994, section 8

Reverse charge on supplies received from abroad

Part I The charge to tax

[F52 (1)Where services are supplied by a person who belongs in a country other than the United Kingdom in circumstances in which this subsection applies, this Act has effect as if (instead of there being a supply of the services by that person)—

(a)there were a supply of the services by the recipient in the United Kingdom in the course or furtherance of a business carried on by the recipient, and

(b)that supply were a taxable supply.F52]

[F52 (2)Subsection (1) above applies if—

(a)the recipient is a relevant business person who belongs in the United Kingdom, and

(b)the place of supply of the services is inside the United Kingdom,

and, where the supply of the services is one to which any paragraph of Part 1 or 2 of Schedule 4A applies, the recipient is registered under this Act.F52]

(3)Supplies which are treated as made by the recipient under subsection (1) above are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).

(4)In applying subsection (1) above, the supply of services treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection.

[F53 (4A)Subsection (1) does not apply to services of any of the descriptions specified in [F54 Part 2 of Schedule 9 and not specified in Part 3 of that ScheduleF54] .F53]

(5)The Treasury may by order [F55amend subsection (4A) by altering the descriptions of services specified in that subsectionF55] .

F56(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F57 (7)The power of the Treasury by order to [F58 amend subsection (4A)F58] shall include power to make such incidental, supplemental, consequential and transitional provision in connection with any [F59 amendment of that subsectionF59] as they think fit.

(8)Without prejudice to the generality of subsection (7) above, the provision that may be made under that subsection includes—

(a)provision making such modifications of section 43(2A) to (2E) as the Treasury may think fit in connection with any [F60 amendment of subsection (4A)F60] ; and

(b)provision modifying the effect of any regulations under subsection (4) above in relation to any services added to [F61 that subsectionF61] .F57]

Definitions used in section 8 9

supplied

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
business

(1) In this Act “business” includes any trade, profession or vocation.

Defined in s.94(1) · see it in the full Act
taxable supply

“taxable supply” has the meaning given by section 4(2);

Defined in s.96(1) · see it in the full Act
subsection (1) above

(a) the reference in subsection (2) to “subsection (1) above” were to “subsection (1) and paragraph 24(1) of Schedule 9ZA”;

Defined in Sch.9ZA para.24(2) · see it in the full Act

(b) the reference in subsection (2A) to “subsection (1) above” were to “subsection (1) or paragraph 24(1) of Schedule 9ZA”.

Defined in Sch.9ZA para.24(2) · see it in the full Act
relevant business person

“relevant business person” has the meaning given by section 7A(4);

Defined in s.96(1) · see it in the full Act
treated as made

(3) References in this Schedule to scheme supplies being “treated as made” in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 29(1) of Schedule 9ZB.

Defined in Sch.9ZD para.38(3) · see it in the full Act
input tax

“input tax” has the meaning given by section 24;

Defined in s.96(1) · see it in the full Act
regulations

“regulations” means regulations made by the Commissioners under this Act;

Defined in s.96(1) · see it in the full Act
prescribed

“prescribed” means prescribed by regulations:

Defined in s.96(1) · see it in the full Act

Cases considering section 8 7

The Commissioners for HMRC v Newey (t/a Ocean Finance)

[2018] EWCA Civ 791 · 17 April 2018Limits

Section 8 was identified as imposing a reverse charge where relevant services supplied from abroad were received by a United Kingdom person for business purposes. (see paras [36]-[37]) Section 8(1) would impose a reverse charge on Mr Newey if the advertising services were supplied to him in the United Kingdom rather than to Alabaster. (see paras [4], [36]-[37]) Section 8(2) was used to identify relevant services by reference to Schedule 5, excluding services within Schedule 9. (see para [36]) Section 8(3) was noted as limiting the input-tax consequences of supplies treated as made by the recipient under the reverse charge. (see para [36])

Medical Protection Society Ltd, R (on the application of) v HM Revenue & Customs

[2009] EWHC 2780 (Admin) · 6 November 2009

Applies the reverse-charge mechanism to services supplied to a United Kingdom recipient by a person in a relevant country outside the United Kingdom. The provision was the statutory basis for HMRC’s demand that the recipient account for VAT on the foreign legal services. (see paras [1]; [4])

Revenue and Customs v Zurich Insurance Company

[2006] EWHC 593 (Ch) · 23 March 2006

Applied the reverse charge where relevant services were supplied by a person belonging outside the United Kingdom to a recipient belonging in the United Kingdom for business purposes. The provision imposed liability on Zurich as if it had supplied the services itself. (see paras [18]; [27]; [29]) Applied to identify consultancy services as relevant services because they were included in Schedule 5 and excluded from Schedule 9. (see paras [18]; [27])

What each judgment says about section 8 is in the case-law panel in the full Act.

Amendments and notes

10 notes from legislation.gov.uk

Amendments

  1. F52S. 8(1)(2) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(2) (with Sch. 36 para. 19)
  2. F53S. 8(4A) inserted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(3) (with Sch. 36 para. 19)
  3. F54Words in s. 8(4A) substituted (with effect in accordance with s. 49 of the amending Act) by Finance Act 2025 (c. 8), ss. 47(4), 49
  4. F55Words in s. 8(5) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(4) (with Sch. 36 para. 19)
  5. F56S. 8(6) omitted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 36 para. 5(5) (with Sch. 36 para. 19)
  6. F57S. 8(7)(8) inserted (19.3.1997) by 1997 c. 16, s. 42
  7. F58Words in s. 8(7) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(6)(a) (with Sch. 36 para. 19)
  8. F59Words in s. 8(7) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(6)(b) (with Sch. 36 para. 19)
  9. F60Words in s. 8(8) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(7)(a) (with Sch. 36 para. 19)
  10. F61Words in s. 8(8) substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 5(7)(b) (with Sch. 36 para. 19)