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Information Sheet 15/03, December 2003

This Information Sheet explains the revised VAT treatment of share registration services

1. Introduction

1.1 What is this Information Sheet about?

This Information Sheet explains the revised VAT liability and place of supply of share registration services.

1.2 Why do we find it necessary to provide guidance in this area?

Following consultation between Customs and the British Bankers' Association (BBA) it has been identified that the VAT treatment of share registration services, as set out in s 2303 of the BBA Blue Book, is incorrect. The BBA Blue Book, which is published by the BBA, details the VAT treatment of a majority of services conducted by banks and financial institutions.

Currently the BBA Blue Book specifies that share registration services are supplied where the customer belongs, with the service qualifying for exemption from VAT when supplied in the UK.

It has been accepted that this is incorrect, and the new VAT treatment that will apply is detailed at paragraphs 6 and 7 below.