VATPOSS11100 | Hire of means of transport: Introduction

The place of supply for short-term hire of a means of transport is the place where the vehicle is put at the disposal of the customer. This applies for supplies to both B2B and B2C.

The place of supply for B2B long-term hire of a means of transport falls under the general rule. This means that it is taxable where the customer belongs. For B2C long-term hire the place of supply is the country where the recipient belongs, except for pleasure craft which will be the place where put at the disposal of the customer where the service is provided from the supplier’s place of business or fixed establishment in that place.