Part I The charge to tax

Supply of goods or services in the United Kingdom

7Place of supply F1of goods.

(1)

This section shall apply (subject to F2sections F3... 18 and 18B) for determining, for the purposes of this Act, whether goods F4... are supplied in the United Kingdom.

(2)

Subject to the following provisions of this section, if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom.

(3)

Goods shall be treated—

(a)

as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and

(b)

as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed.

F5(4)

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F5(5)

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F6(5A)

Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied outside the United Kingdom where the supply—

(a)

meets the imported consignment condition in section 5A; and

(b)

is deemed to be to the operator of an online marketplace.

(5B)

Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—

(a)

they are supplied by a person in the course or furtherance of a business carried on by that person;

(b)

the supply involves the goods being imported;

(c)

the intrinsic value of the consignment of which the goods are part is not more than £135; and

(d)

the consignment of which the goods are part—

(i)

does not contain goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods; and

(ii)

is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.

(6)

Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—

(a)

their supply involves their being imported F7...; and

(b)

the person who supplies them is the person by whom, or under whose directions, they are so imported.

(7)

Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated—

(a)

as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and

(b)

as supplied outside the United Kingdom in any other case.

(8)

For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in the United Kingdom to another place in the United Kingdom, leave and re-enter the United Kingdom the removal shall not be treated as a removal from or to the United Kingdom.

F8(9)

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F9(9A)

The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in subsection (5B)(c).

F10(10)

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(11)

The Treasury may by order provide, in relation to goods F11... generally or to particular goods F11... specified in the order, for varying the rules for determining where a supply of goods F11... is made.

F12(12)

The Commissioners may by regulations provide that any rule for determining where a supply of goods is made is subject to such conditions relating to the notification of matters to the Commissioners, or such other conditions, as may be specified in the regulations.