Place of Supply

    The location where a transaction is deemed to occur for VAT purposes.

    Definition

    Place of supply rules determine which country's VAT applies to a transaction. For goods, it is generally where the goods are delivered. For services, it depends on whether the customer is a business (B2B: customer's country) or a consumer (B2C: supplier's country, with exceptions for digital services).

    Related Terms

    VAT (Value Added Tax)
    A consumption tax levied at each stage of the supply chain.
    B2B Transactions
    Business-to-business sales with specific VAT rules.
    B2C Sales
    Business-to-consumer sales where VAT applies at the consumer's location.

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