# place of performance

*Last updated: 2026-06-26*

> The place of supply (also: place of performance) is the legally determined location where a transaction is deemed to occur for VAT purposes, governing which country's rules apply and whether the supply is taxable, exempt, or subject to reverse charge.

The place of supply (also: place of performance) is the legally determined location where a transaction is deemed to occur for VAT purposes, governing which country's rules apply and whether the supply is taxable, exempt, or subject to reverse charge. For goods, it is generally where transport begins or, in certain cases, the destination. For services, the answer depends on both the nature of the service and the recipient's status. In B2B transactions, the default rule places supply at the customer's establishment, shifting tax liability to the recipient under the reverse charge mechanism so that the service provider invoices without VAT. In B2C situations, supply is typically deemed to occur at the supplier's establishment. For freight forwarders and customs agents, correctly identifying the place of supply for every cross-border service is not merely a formality: it determines invoicing requirements, VAT reporting obligations, and potential liability.

**Source:** [https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules/place-of-supply_en.htm](https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules/place-of-supply_en.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | place of performance |
| Language | EN |
| Word count | 145 |
| Last updated | 2026-06-26 |
| Source | https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules/place-of-supply_en.htm |

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