One of the most critical VAT issues regarding the on-line trading in securities is ascertaining where the supply has taken place. This may not always be easy to determine as trading may have taken place via a chain of brokers or intermediaries. The UK has an “easement” rule depending upon whether the place of the transaction (e.g the relevant securities exchange) is known or not. In certain circumstances the place of supply could depend upon such esoteric factors such as where the last broker in the chain-trading situation actually “belongs” – difficult to determine in an Internet scenario!
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