Following this year’s Budget, an Order was made on 11 July 2016 changing the VAT place of supply rules for repair services of tangible moveable property, such as cars. The Order ensures that such repair services are treated as made where they are used and enjoyed. The Order applies to repair services received on or after 1 October 2016.
The Order will prevent UK insurance companies avoiding VAT by having property repaired outside of the EU.
The Statutory Instrument 2016 No 726 can be found here.