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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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This is a VAT question. My son lives and works in Dubai, is

Resolved Question:

This is a VAT question. My son lives and works in Dubai, is he liable to pay VAT on an Estate agents fees.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me what the VAT applies to exactly please. What service or services were provided by the esate agent?
Customer: replied 2 years ago.

HI

It is Vat on their services in selling his London property.

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Customer: replied 2 years ago.

Thank you

Expert:  TonyTax replied 2 years ago.
I'm back.

Whether there should be a VAT charge or not depends on the place of supply of the service. The "general rule" is that the place of supply is determined by whether the customer is a business customer or a non-business customer. For a business customer, the place of supply is generally where the customer belongs. For a non-business customer, the place of supply is generally where the supplier belongs. Look under the heading "The general rule and the place of belonging" here.

If you look under the heading "Land and property services" here, it clearly states that for the professional services of an estate agent, the place of supply is always where the property is situated. See paragraphs 6.1 and 6.4 here for further confirmation.

Assuming the estate agent has charged VAT on the fee for the sale of the London property, then that is correct and lawful.

I hope this clarifies things for you but let me know if you have any further questions.
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