Deconstructing the UK VAT fixed establishment test

Justin Miller

Entities with a UK corporate tax permanent establishment will frequently have a UK VAT fixed establishment. This should not always, however, be considered as a foregone conclusion, particularly for foreign businesses performing UK construction projects, writes Justin Miller (VAT systems).

Why a VAT fixed establishment matters for construction companies

When the place of supply of a service is considered to be the UK as in the case of UK land-related services such as UK commercial construction it is necessary to determine which party (the supplier or the customer) must account for any VAT on such services to HMRC. This can depend on where the supplier is established for VAT purposes.

For example where the supplier belongs in the UK in respect of the supply then it must charge UK VAT on its supply of construction services performed in the UK which are liable to UK VAT. Where...

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Why a VAT fixed establishment matters for construction companies

For example where the supplier belongs in the UK in respect of the supply then it must charge UK VAT on its supply of construction services performed in the UK which are liable to UK VAT. Where...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes: