Place of supply of a service provided to a non-taxable person

When the recipient is a non-taxable person, this shall be the place where the supplier has established its independent economic activity.

Question: Which is the place of supply of a service provided to a non-taxable person?

Answer: The general rule for determining the place of supply of a service provided to a non-taxable person is the following: when the recipient is a non-taxable person, this shall be the place where the supplier has established its independent economic activity.

An exception to this general rule are the services for which special provisions are applied regarding their place of provision, regardless is they are provided to a taxable or non-taxable person:

• In case of services related to immovable property – the place of supply shall be the place where the immovable property is situated.

• In case of supply of passenger transport services – the place of supply shall be the place where the passenger transport is carried out, in proportion to the mileage done.

• In case of supply of restaurant and catering services – the place of supply shall be the place where the service are actually provided.

• The place of supply in case of a short-term rental service/short-term provision of vehicles for use shall be the place where the vehicles are actually handed over to the recipient for use.

• The place of provision of electronic communications services and radio and television broadcasting services, where the recipient of the said supplies is a non-taxable person, shall be the place where this person is established, has his permanent address or usually resides.

Services for which special provisions apply to the place of supply when the recipient is a non-taxable person:

• The place of supply of a service which is provided by an intermediary acting in the name and on behalf of another person, provided to a non-taxable person, shall be the place of the main supply in connection with which the mediation has been performed.

• In case of transportation of goods within the European Union – the place of supply shall be the territory of the member state where transportation begins if the service is rendered to a non-taxable person.

• Transportation of goods outside the European Union – the place of supply shall be the place of performance of transportation, in proportion to the mileage done, if the service is rendered to a non-taxable person.

• Forwarding, courier and postal services shall be equal to transportation services in the European Union, respectively transportation services outside the European Union.

• The place of supply in case of a vehicle rental service or provision of vehicles for use, which is different from a short-term vehicle rental service or short-term provision of vehicles for use by a non-taxable person, shall be the place where the recipient is established, or has his permanent address or usually resides.

• The place of supply in case of a vessel rental service or provision of vessels for use, which is different from a vessel short-term rental service or short-term provision of vessels for use, for entertainment or sports purposes, or for the personal needs of a non-taxable person, shall be the place where the entertainment vessel is actually provided to the recipient of the supply, when this service is actually provided by the supplier from the place of establishment of its economic activity or from a permanent site situated in that place.

• Supply of intangible services:

- If the service is provided to a non-taxable person from a third country, the place of supply shall be the place where the recipient is established, or has his permanent address or usually resides.

- If the service is provided to a non-taxable person from the European Union, the place of supply shall be the place where the supplier is established, or has his permanent address or usually resides.

•  In case of supply of services, and accompanying services, associated with cultural, artistic, sports, scientific, educational, entertainment or other similar events (including fairs and exhibitions), including the activity of organising them – the place of supply shall be the place where the service provided to a non-taxable person is actually rendered.

• In case of supply of services relating to transport handling of goods – the place of supply shall be the place where the service provided to a non-taxable person is actually rendered.

• In case of supply of services connected with the valuation, expert examination or work on a movable item – the place of supply shall be the place where the service provided to a non-taxable person is actually rendered.