(1) In this Act "supply", in relation to a service, means the performance or omission of any act or the toleration of any situation other than the supply of goods and other than a transaction specified in section 3(5).

(2) The provision of food and drink, of a kind specified in [paragraph 8 of Schedule 2]¹, in a form suitable for human consumption without further preparation-

(a) by means of a vending machine,

(b) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

(c) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied,

shall be deemed, for the purposes of this Act, to be a supply of services and not a supply of goods.

(3) Any of the following shall, if so provided by regulations, and in accordance therewith, be deemed, for the purposes of this Act, to be a supply of services by a person for consideration in the course or furtherance of his business-

[(a) the use of goods [other than immovable goods]¹ forming part of the assets of a business-

(i) for the private use of [an accountable person]² or of such person's staff, or

(ii) for any purposes other than those of [an accountable person's]² business,

where the tax on such goods is wholly or partly deductible,

(b) the supply of services carried out free of charge by [an accountable person]² for such person's own private use or that of the staff of such person or for any purposes other than those of such person's business,

(c) the supply by [an accountable person]² of services for the purposes of such person's business where the tax on such services, were they supplied by [another accountable person]², would not be wholly deductible.]³

(3A) ...

(3B) The use of immovable goods forming part of the assets of a business—

(a) for the private use of an accountable person or of such person’s staff, or

(b) for any purpose other than those of the accountable person’s business,

is a taxable supply of services if—

(i) that use occurs during a period of 20 years following the acquisition or development of those goods by the accountable person, and

(ii) those goods are treated for tax purposes as forming part of the assets of the business at the time of their acquisition or development.

(4) The supply of services through a person (in this subsection referred to as the agent) who, while purporting to act on his own behalf, concludes agreements in his own name but on the instructions of and for the account of another person, shall be deemed for the purposes of this Act, to constitute a supply of the services to and simultaneously by the agent.

(4A) Where services are supplied by a person and the person is not legally entitled to recover consideration in respect of or in relation to such supply but moneys are received in respect of or in relation to such supply, the services in question shall be deemed, for the purposes of this Act, to have been supplied for consideration and the moneys received shall be deemed to be consideration that the person who supplied the services in question became entitled to receive in respect of or in relation to the supply of those services.

(4B) Where a person is indemnified under a policy of insurance in respect of any amount payable in respect of services of a barrister or solicitor, those services shall be deemed, for the purposes of this Act, to be supplied to, and received by, the said person.

(5) The following rules apply to determine the place where, for the purposes of this Act, services are supplied:

(a) except as provided by paragraphs (c), (d), (g), (i), (j) and (k), the place of supply of services to a taxable person (in the person’s capacity as such) is—

(i) the place where the person’s business is established, or

(ii) if the services are supplied to a fixed establishment of the person located in a place other than the place where the business is established — the place where the fixed establishment is located, or

(iii) if there is no such place of business or fixed establishment — the place where the permanent address or usual place of residence of the taxable person who receives the services is located;

(b) except as provided by paragraphs (c) to (n), the place of supply of services to a non-taxable person is—

(i) the place where the supplier’s business is established, or

(ii) if the services are supplied from a fixed establishment of the supplier located at a place other than the place where the supplier’s business is established — the place where the fixed establishment is located, or

(iii) if there is no such place of business or fixed establishment — the place where the permanent address or usual place of residence of the supplier is located;

(c) if the supply of services is connected with immovable goods, or is the grant of a right to use those goods — the place where those goods are located;

(d) if the supply of services is the provision of passenger transport—the place or the respective places where the transport takes place;

(e) if the supply of services is the provision of the transport of goods to a non-taxable person and is not an intra-Community transport of goods — the place or places where the transport takes place;

(f) if the supply of services is the provision of intra-Community transport of goods to a non-taxable person — the place of departure of those goods (being the place where the transport of the goods actually begins) irrespective of the distance covered by the means of transport in order to reach the place where the goods are located;

(g) if the supply of services, and of any ancillary services, is connected with cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions and the supply of services of the organisers of such activities) — the place where those activities are physically carried out;

(h) if the supply of services consists of —

(i) ancillary transport activities, such as loading, unloading and handling goods, or

(ii) carrying out valuations of, or work on, movable goods, or

(iii) contract work,

and is to a non-taxable person — the place where the services are physically carried out;

(i) if the supply of services is the provision of restaurant or catering services (other than those mentioned in paragraph (j)) — the place where those services are physically carried out;

(j) if the supply of services is the provision of restaurant or catering services that are physically carried out on board a ship, aircraft or train during a section of a passenger transport operation undertaken within the Community and the first scheduled point of departure within the Community of that transport operation is in the State — the State;

(k) if the supply of services consists of a short-term hiring out of a means of transport — the place where the means of transport is actually placed at the disposal of the customer;

(l) if the supply of services is the provision of electronically supplied services that are supplied to a non-taxable person—

(i) who is established in the State, or

(ii) whose permanent address is within the State, or

(iii) who usually resides in the State,

the State, but only if the services are supplied by a taxable person—

(iv) whose business is established outside the Community, or

(v) who has a fixed establishment outside the Community from which the services are supplied, or

(vi) if the person does not have such a place of business or fixed establishment — whose permanent address or usual place of residence is outside the Community;

(m) if the supply of services consists of a supply of services specified in subsection (5D) and the supply is to a non-taxable person—

(i) who is established outside the Community, or

(ii) whose permanent address is outside the Community, or

(iii) who usually resides outside the Community,

the place where the person is established, has a permanent address or usually resides;

(n) if the supply of services is the provision of services to a non-taxable person by an intermediary acting in the name and on behalf of another person — the place where the transaction underlying the supply is made.

(5A) In subsection (5)(c), a supply of services connected with immovable goods includes the following:

(a) a supply of services by experts or estate agents;

(b) a provision of accommodation in a hotel or guesthouse or in an establishment having a similar function, or in a holiday camp or a site developed for use as a camping site;

(c) a supply of services involving the preparation and co-ordination of construction work (including a supply of services of architects and of persons who provide on-site supervision).

(5B) In subsection (5)(e), "intra-Community transport of goods" means any transport of goods in respect of which the place of departure and the place of arrival are located within the territories of two different Member States.

(5C) In subsection (5)(k), "short-term" means the continuous possession or use of a means of transport throughout a period of not more than 30 days or, if the means of transport is a vessel, not more than 90 days.

(5D) The following services are specified for the purpose of subsection (5)(m):

(a) services that consist of transferring or assigning copyrights, patents, licences, trade marks and similar rights;

(b) advertising services;

(c) the services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as data processing and the provision of information;

(d) services that consist of obligations to refrain from pursuing or exercising, wholly or partially, a business activity or a right referred to in this subsection;

(e) services that consist of financial or insurance transactions;

(f) services that consist of supplying staff;

(g) services that consist of hiring out movable tangible property, other than a means of transport;

(h) services that consist of providing access to, or transmission through, natural gas and electricity distribution systems, and providing other services directly linked to those systems;

(i) telecommunications services;

(j) radio and television broadcasting services;

(k) electronically supplied services.

(5E) In subsection (5D)(e)—

"financial transactions" include banking transactions and financial fund management transactions, but do not include the provision of safe deposit facilities;

"insurance transactions" include reinsurance transactions.

(6) If, in the case of a supply of services that consists of hiring out movable goods, the place of supply of the services would, apart from this subsection, be a place outside the Community but the services are in effect used and enjoyed in the State, the place of supply of those services is nevertheless taken to be the State for the purposes of this Act.

(6A)(a) Subject to paragraph (b), where the supply of a telephone card is taxable within the State and that telephone card is subsequently used outside the Community for the purpose of accessing a telecommunications service, the place of supply of that telecommunications service shall be deemed to be outside the Community and the supplier of that telephone card shall be entitled, in the taxable period within which that supplier acquires proof that that telephone card was so used outside the Community, to a reduction of the tax payable by that supplier in respect of the supply of that telephone card, by an amount calculated in accordance with paragraph (c).

(b) Where the supply of a telephone card is taxable in the State and the person liable for the tax on that supply is a person referred to in [section 8(1A)(aa) or (ab)]¹ who-

(i) is not entitled to a deduction, in accordance with section 12, of all of the tax chargeable in respect of that supply, or

(ii) is entitled to a deduction, in accordance with section 12, of the tax chargeable in respect of that supply because that card was acquired for the purposes of resale,

and that telephone card is subsequently used outside the Community for the purpose of accessing a telecommunications service, the place of supply of that telecommunications service shall be deemed to be outside the Community and the person who is taxable in respect of that supply of that telephone card shall be entitled, in the taxable period within which that person acquires proof that that telephone card was so used outside the Community, to a reduction of the tax payable in respect of that supply of that telephone card to the extent that that telephone card was so used.

(c) For the purposes of this subsection the amount of the reduction referred to in paragraph (a) shall be calculated as follows:

(A - B)  _x       C     
                 C + 100

where—

A equals the tax inclusive price charged by the supplier for that part of the right contained in the telephone card which was consumed in accessing the telecommunications service which was deemed to be supplied outside the Community,

B equals the tax inclusive price charged to the supplier for that part of the right contained in the telephone card which was consumed in accessing the telecommunications service which was deemed to be supplied outside the Community, and

C is the percentage rate of tax chargeable on the supply of the telephone card at the time of that supply by that supplier.

(d) Where a telephone card is used to access a telecommunications service, the value of the telephone card so used shall, for the purposes of section 10(2), be disregarded.

(e) ...²

(6AA) If, in the case of a supply of services that consists of hiring out a means of transport, the place of supply of the services would, apart from this subsection, be the State but those services are in effect used and enjoyed outside the Community, the place of supply of those services is nevertheless taken to be outside the Community for the purposes of this Act.

(6AB) If, in the case of a supply of services that consists of the provision to a non-taxable person of a telecommunications service, a radio or a television broadcasting service or a telephone card, the place of supply of the service or card would, apart from this subsection, be outside the Community but the service is in effect used and enjoyed in the State, the place of supply is nevertheless taken to be the State for the purposes of this Act.

(6AC) If, in the case of a supply of services that consists of the provision by a taxable person established in the State of a telecommunications service or a telephone card to a non-taxable person, the place of supply of the service or card would, apart from this subsection, be outside the Community but the service is in effect used and enjoyed in the State, the place of supply is taken to be the State for the purposes of this Act.

(6AD) If, in the case of a supply of services that consists of the provision to a non-taxable person of financial services or insurance services, the place of supply of the services would, apart from this subsection, be a place outside the Community but the services are in effect used and enjoyed in the State, the place of supply is nevertheless taken to be the State for the purposes of this Act.

(6AE) In subsection (6AD)—

"financial services" include banking services and financial fund management services, but do not include the provision of safe deposit facilities;

"insurance services" include reinsurance.

(6AF) If money transfer services provided to a person in the State are in effect used and enjoyed in the State, the place of supply of intermediary services that are provided in respect of, or in relation to, those services to a principal established outside the Community, is taken to be the State for the purposes of this Act.

(7) ...

(8)(a) The transfer of goodwill or other intangible assets of a business, in connection with the transfer of the business or part thereof, even if that business or that part thereof had ceased trading, [or in connection with a transfer of ownership of goods in accordance with section 3(5)(b)(iii)]¹ by-

[(i) an accountable person to a taxable person who carries on a business in the State, or]²

(ii) a person who is not [an accountable person]³ to another person,

shall be deemed, for the purposes of this Act, not to be a supply of services.

(b) For the purposes of this subsection, ["accountable person"]³ shall not include a person who is [an accountable person]³ solely by virtue of subsections (1A) and (2) of section 8.

(9) For the purpose of applying subsection (5), every person registered for value-added tax is a taxable person.

(10) ...