The article explains how the place of supply rules for travel services differ from standard B2B and B2C rules, highlighting key exceptions such as accommodation, transport, restaurants and event admission. It details how the Tour Operators Margin Scheme (TOMS) shifts the place of supply to the supplier’s location, offering potential VAT savings for UK and non‑UK businesses. Practical examples illustrate how different scenarios can change whether UK VAT is due.
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GOV.UK · about 7 hours ago
UK guidance on customs procedures for goods moved into the UK for international events. It covers Temporary Admission, ATA Carnet, and import duty reliefs, including application timelines, duration limits, and applicable Additional Procedure Codes (APCs).
E-Invoice.app · about 12 hours ago
HMRC has confirmed that Peppol will be the core e‑invoicing network in the UK, with a mandate set for 2029. The decentralised model will allow businesses to exchange invoices directly through their software providers, and real‑time reporting will be considered later. Technical standards and a roadmap are expected at Budget 2026.
UK Government · 1 day ago
The UK government is consulting on extending online marketplace VAT liability to domestic sellers, requiring marketplaces to collect and remit VAT on sales by UK-based sellers when goods are situated in the UK at the point of sale. The consultation runs from 23 June to 18 August 2026 and aims to reduce non‑compliance and level the playing field for VAT‑compliant sellers.
Guardian · 4 days ago
The UK government has introduced a temporary VAT cut from 20% to 5% on a range of family-friendly activities, including cinema, theatre, attractions and children’s meals, running from 25 June 2026 until 1 September 2026. Businesses may choose to pass on the reduced rate, and the scheme also offers free local bus travel for children in England during August.
Withers · 5 days ago
The Court of Appeal ruled that public funds paid to further education institutions are third‑party consideration for the supply of education, placing them within the scope of VAT but exempt. HMRC accepts the judgment, will not pursue a further appeal, and maintains the current position pending consultation, meaning institutions can continue their existing VAT treatment until any future policy change applies prospectively.
VATIT · 5 days ago
HMRC has replaced its default surcharge system with a points‑based penalty regime effective 1 January 2023. Late submissions accrue one penalty point each, with a £200 financial penalty triggered at filing‑frequency thresholds, while late payments incur percentage‑based penalties and interest at the Bank of England base rate plus 4%. Businesses must appeal within 30 days of a penalty notice and can reset points after a compliance period.
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Key Takeaways
For B2B customers, the place of supply is where the customer is established.
Under TOMS, the place of supply is where the supplier is located, regardless of where the service takes place.
Accommodation is an exception where the place of supply is where the property is located.
Yes, if the services qualify for TOMS criteria, the place of supply can shift to Ireland, eliminating UK VAT.
Primary source
Read full article on LinkedIn by Laura ChippThis summary was published on VATfaqs.com on 24 March 2026. It relates to VAT developments in United Kingdom. The original source is LinkedIn Article by Laura Chipp.
