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Up in the air

13 July 2010
Issue: 4263 / Categories: Forum & Feedback , FA 2009 , VATA 1994 , Zurich Insurance Company , VAT
A business supplies and installs display materials and shop-fitted furniture in airside shops in UK airports. How are these supplies to be treated for VAT purposes?

I have been appointed to act on behalf of a client who makes and installs display materials and shop-fitted furniture for UK airports’ airside shops some of which are EU customers. Supplies are charged wholly at the standard rate.

One of my new client’s EU customers is stating that – under the new VAT rules for European Union trading introduced in January 2010 – the manufacture of the goods should continue to be standard rated but the supply of the installation of the goods should be zero rated as they are an EU customer.

I should be grateful for the views of Taxation readers’ here.

Query 17 629 – Airman

Reply from Scorpio

I do not think that the VAT position in relation to these services has changed following the change in the VAT legislation relating to supplies of services from 1 January 2010.

I believe that all...

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