In all other cases where there is to be only one final recipient, the place of delivery is the domain of the postal address of the recipient of the delivery. If you supply the rental of goods, telecommunications services, broadcasts and electronically supplied services where the place of supply of services would be outside the EU in accordance with Sections 6, 12 or 13 and the services are actually used and used by your customer in an EU Member State, you can register for VAT in that Member State (see point 2.9). If you provide telecommunications, broadcasting or broadcasting services or services provided electronically on a B2C basis, you should refer to Articles 14 and 15. If you are not registered for VAT in the United Kingdom and you receive the services referred to in paragraph 5.9 that are supplied in the United Kingdom, the reverse charge mechanism does not apply. Unlike general standard services, these supplies do not count as your taxable supplies in determining whether you need to be registered as a taxable person, as described in paragraph 5.7. Your supplier is required to take into account the UK VAT due. You hire a national company to provide equipment repair services for a fixed fee for the equipment in 3 provinces as follows: It is usually the case that the permanent establishment is most closely involved in the delivery. However, if the supply is made with the human and technical resources of a permanent establishment, or if the supply is made for the purposes of the permanent establishment and not for the enterprise as a whole, this will be the place most closely involved in the supply. An Alberta store agrees to sell merchandise to a buyer in Ontario. According to the delivery terms of the contract for the sale of the goods, the goods will be legally delivered to the purchaser in Alberta. However, the supplier agrees that the goods will be shipped to the purchaser in Ontario. Although legal delivery of the goods to the buyer is in Alberta, delivery of the goods to the buyer will be deemed to have occurred in Ontario because the supplier ships the goods to an address in Ontario. The place of delivery is Ontario (a participating province) and HST is valid at the Ontario rate.
The usage rules are designed to ensure that taxation takes place where the services are consumed, if either of the services is consumed in the UK but would otherwise escape VAT, or if they would be subject to UK VAT outside the UK and the EU. Use and enjoyment shall not apply where the services are subject to VAT in one Member State but consumed in another. This means that if you make services taxable in the UK that are not subject to the reverse charge mechanism (see section 5), you will need to register for VAT here (unless you are entitled to use a special accounting system such as MOSS – see section 15) and pay HMRC UK VAT. If you only supply services in the UK that are subject to the reverse charge mechanism, you cannot register for VAT in the UK. For more information on registration, see note 700/1: Do I need to be VAT registered?. The place of delivery is a participating province if the property located in Canada to which the service relates is primarily (more than 50%) located in participating provinces. The place of performance is the participating federal state in which most of the property is located. There are additional rules for all leased goods (including the rental of means of transport) depending on where the delivery is used and appreciated, which may prevail over these rules – see section 13. This allows you to determine whether the place of supply for VAT purposes is covered by a general rule or by one of the exceptions to those general rules. While the main obligation to ensure correct VAT treatment lies with the supplier, customers should also be aware of the place of supply rules in order to avoid a situation where VAT is wrongly charged to you or where you may have reporting obligations under the reverse charge mechanism, which will be explained in more detail below. A person from Cold Lake, Alberta, is injured while on a fishing trip to Newfoundland and Labrador. When they return to Alberta, they call a lawyer to see if they have a cause of action against the Newfoundland and Labrador charter company that organized the trip.
The prosecutor receives the person`s home address in Alberta in the ordinary course of business. The lawyer informs the person that he or she has a cause of action against the charter company. The person asks the lawyer to file a statement against that company. The lawyer files the declaration in Newfoundland and Labrador. The GST applies to services provided before the litigation begins, as the place of supply of these services is Alberta (a non-participating province). The HST applies to the lawyer`s services provided after the commencement of litigation at Newfoundland and Labrador rates, since the place of supply of these services is Newfoundland and Labrador (a participating province). First, let`s understand why accurate location determination is important for businesses. The reasons for this are as follows: Therefore, only the supply of the real estate portion of the service in Canada is subject to GST/HST. All you have to do is credit your VAT account with an amount of output tax, calculated on the total value of the delivery you have received, and at the same time debit your VAT account with the input tax to which you are entitled under the normal rules. The impact of the partial exemption on reverse charge services is explained in Communication 706: Partial Exemption. As a supplier, you must first determine whether you are providing goods or services.
For VAT purposes, a supply of services is generally any commercial activity other than a supply of goods. The VAT rate must also be taken into account and depends on the underlying good/service provided. Then check whether you are supplying a private consumer (B2C) or a business customer (B2B). Providing a VAT number is usually the easiest way to identify a business customer, but there may be other indicators that can be considered. Next, where is your customer? Do you supply goods/services in Ireland or is there cross-border movement? Are deliveries made to customers inside or outside the EU? If postage payment for a postal delivery service provided by Canada Post Corporation that is not provided under a bill of lading is evidenced by an approval imprint, the place of delivery is the province in which the recipient of the delivery deposits the mail with the Corporation in accordance with the agreement between the recipient and the company authorizing the use of the authorization imprint.