UK VAT - Minor Change With Major Consequences

It has long been the case for some specific categories of VATable service that the place of 'supply' has been deemed to be where the recipient belongs.
As of 1 January of this year this will also be the case in many situations where previously the point of supply was treated as the place where the supplier belongs.

Why does it matter?

The new rules mean that VATable supplies may now occur where payments are made by UK charities to entities outside the UK, which would include making payments to 'parent' charities that are based overseas.

Whereas historically there was usually no VAT attributable to a supply because the supplier belonged outside the UK, a VAT charge may now be incurred in the UK. This could be a costly difference to a UK charity, especially if the supply originates outside the EU or in an EU country with lower VAT rates than the UK's.