From 1 January 2010 there are major changes to the rules determining the place of supply of services. HMRC have issued VAT notice 741A explaining the new rules and who must account for any VAT due.

The changes will affect those who make supplies of services to customers in other Member States of the European Community (EC) or to customers outside the EC. It will also affect those who receive services from suppliers that belong outside the UK.

The changes include a new basic rule (‘the general rule’) for business to business supplies and a reduction in the number of exceptions to the general rule. Further changes are due to come into effect on 1 January 2011, 1 January 2013 and 1 January 2015. The notice gives guidance on the changes up to and including 1 January 2013.

Full details can be accessed at http://customs.hmrc.gov.uk/