Value Added Tax Act 1994, section 9

Place where supplier or recipient of services belongs

Part I The charge to tax

(1)This section has effect for determining for the purposes of section 7A (or Schedule 4A) or section 8, in relation to any supply of services, whether a person who is the supplier or recipient belongs in one country or another.

(2)A person who is a relevant business person is to be treated as belonging in the relevant country.

(3) In subsection (2) “the relevant country” means—

(a)if the person has a business establishment, or some other fixed establishment, in a country (and none in any other country), that country,

(b)if the person has a business establishment, or some other fixed establishment or establishments, in more than one country, the country in which the relevant establishment is, and

(c)otherwise, the country in which the person's usual place of residence [F63 or permanent addressF63] is.

(4) In subsection (3)(b) “relevant establishment” means whichever of the person's business establishment, or other fixed establishments, is most directly concerned with the supply.

(5)A person who is not a relevant business person is to be treated as [F64 belonging—

(a)in the country in which the person's usual place of residence or permanent address is (except in the case of a body corporate or other legal person);

(b)in the case of a body corporate or other legal person, in the country in which the place where it is established is.F64]

F65(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F62]

Definitions used in section 9 3

the supplier

(b) the goods are removed in the course or furtherance of that business by or under the directions of the person carrying on that business (“the supplier”),

Defined in Sch.9ZA para.57(1) · 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
business

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

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

Cases considering section 9 4

Revenue and Customs v Zurich Insurance Company

[2006] EWHC 593 (Ch) · 23 March 2006Interprets

Applied to determine where PwC AG belonged. Its business establishment was in Switzerland, so its supply was treated as made outside the United Kingdom under section 7(10). (see paras [18]; [27]) Applied to establish that PwC AG belonged in Switzerland because it had its business establishment there. (see paras [18]; [27]) Applied to determine where a recipient with establishments in more than one country belonged in relation to a particular receipt of services. (see paras [18]; [27]) Applied by reference to the establishment at which, or for the purposes of which, the services were most directly used. That establishment was in the United Kingdom. (see para [27]) Not materially applied to the outcome. It was set out as part of the statutory rules for determining where a person carrying on business through a branch or agency is established. (see para [18])

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

[2018] EWCA Civ 791 · 17 April 2018Defines

Section 9 was identified as containing the detailed rules for deciding where a supplier or recipient belongs for VAT purposes. (see para [35]) Section 9(2)(a) was applied to identify a business or fixed establishment as the basis for determining where a supplier belongs. (see para [35]) Section 9(5)(a) was used to explain when a person carrying on business through a branch or agency is treated as having a business establishment in that country. (see para [35])

Arachchige v Revenue and Customs

[2010] EWCA Civ 1255 · 8 November 2010

Section 9(2) identified when a supplier belonged in a country by reference to a business establishment or fixed establishment. The appellant belonged in the United Kingdom. (see para [13])

What each judgment says about section 9 is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F62S. 9 substituted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 6 (with Sch. 36 para. 19)
  2. F63Words in s. 9(3)(c) inserted (with effect in accordance with s. 104(5) of the amending Act) by Finance Act 2014 (c. 26), s. 104(2)
  3. F64Words in s. 9(5) substituted (with effect in accordance with s. 104(5) of the amending Act) by Finance Act 2014 (c. 26), s. 104(3)
  4. F65S. 9(6) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 9 (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.