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We are unsure whether we should be zero rating our invoices to our UK customer. They have told us we should be zero rating our invoices to them. They transport abnormal loads from UK to France. We provide the escort car service for the abnormal load for example – from Crawley UK to Paris France. The question is, is an escort car service from UK – France considered a related service even though we have no involvement in the import/export of the transport itself? – because all the related services they mention seem to refer to those involved with import/export eg – storage/shipping/handling.
If you’re covering the whole journey, not just the part in France, I don’t think it makes a difference.
The “general rule” for B2B cross-border services is that the place of supply is where the customer belongs. Suppliers based abroad invoice without VAT, and customers account for VAT using the “reverse charge”.
If your service was considered to be related to the shipping, HMRC’s Notice 744B, section 3.2, says that the place of supply follows the “general rule” unless the shipping was entirely outside the UK:
https://www.gov.uk/guidance/vat-on-freight-transport-and-associated-services-notice-744b#place-of-supply
But if your service was not considered to be related to the shipping, it would still fall under the “general rule”, as none of the other exceptions seem relevant.
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