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VAT

Expert commentary and practical guidance from ICAEW related to VAT under the UK tax regime.

In this section

Features and articles

Stirring the VAT

With less than a year to go until the UK officially leaves the European Union, businesses should be turning their attention to what might change, and where they may be at risk.

Input VAT claims on non-commercial activity

In the Yorkshire Agricultural Society case, the question was whether the input VAT on related costs could be claimed where there was no "economic activity". It is therefore important to consider what economic activity is.

VAT notice 725: the single market

This notice explains how businesses should charge and account for VAT on the movements of goods within the EC Single Market.

Webinars and recordings

Webinar: VAT Changes Update

First broadcast 18 November 2014 - This webinar will cover details about the 2015 changes to the VAT place of supply of services rules and the option of registering with HMRC for the Mini One Stop Shop. It will provide answers to many of the questions being asked about the changes and advise on what you need to do now to prepare for them, including how to register for the Mini One Stop Shop.

Practical guidance

TAXguide 23/17: VAT MOSS

In TAXguide 23/17, Neil Gaskell explains the changes introduced on 1 January 2015 to the VAT rules for business to consumer supplies of digital services within the EU.

TAXguide 21/17: The tax implications of Brexit

Although many of the tax implications of Brexit are currently unknown it is VAT and customs duties which are most likely to be affected. As these are based on EU law, Brexit provides an opportunity for the UK government to make legislative changes to these taxes. In this guide ICAEW's Tax Faculty outlines the potential consequences.

TAXguide 04/09

Money laundering: supplementary guidance for the tax practitioner

Abbey Tax FAQs

Questions and answers on UK tax issues and trends from the ICAEW Tax and VAT Helpline, a subscription service provided by Abbey Tax.

Abbey Tax FAQs are correct at the time of going to press. To check current validity, please call the ICAEW Tax and VAT Helpline.

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Value added tax 2

This second chapter on VAT explains how the tax is administered by HMRC, as well as a number of schemes which simplify the VAT system.

Value added tax 1

A chapter setting out the essential principles of VAT, as set out in the Value Added Tax Act 1994 and subsequent Finance Acts.

Scope and rates of value added tax

Short summary of what is chargeable for VAT in the UK, who constitutes a taxable person and how much tax is paid at different rates of VAT.

VAT administration, appeals and interest

A high level overview of the framework of VAT administration covering appeals and the interest charged on VAT recovered through the raising of an assessment.

Registration and de-registration

Briefly explains who has an obligation to register for VAT with a worked example for a small business. It also notes the pros and cons of voluntary VAT registration.

Exports

An overview of exporting from the UK. The chapter covers VAT treatment of direct and indirect exports, customs and excise, and the different types of export declaration.

Recovery of VAT cross-border

This chapter explains the schemes for businesses recovering VAT incurred within the EU.

The general VAT rule as they apply to property-related supplies

This chapter outlines the UK VAT rules for the supply of property, including the tests for goods or services, time and value of supply, and supplies which span a change in the VAT rate or liability for tax.

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ICAEW Rep 31/18

VAT Postponed accounting letter to FST

ICAEW REP 29/18

MTD - Interest harmonisation and sanctions for late payment

ICAEW Rep 18/18

MTD – Draft value added tax (amendment) regulations & notice 2018

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

KPMG Indirect tax rates table

Table from KPMG providing data on indirect tax rates around the world with brief accompanying notes. A separate interactive Tax rates tool allows you to compare tax rates by country or region.

VAT Information Exchange System (VIES)

Useful online tool for checking the validity of EU VAT numbers. The service is provided by the European Commission and uses data supplied by member states.

VAT on GOV.UK

Extensive collection of HMRC guidance on rates, thresholds, managing VAT and VAT returns. Contains specific guidance for builders, car dealers, importers and tour operators.

HMRC VAT manuals

A-Z of internal VAT manuals used by HMRC with detailed advice for specific sectors and circumstances. The guidance was produced for HMRC staff and 'should not be relied upon by businesses when calculating their taxes and/or duties'.

Global Indirect Tax publications and articles

Updates on indirect tax around the world from KPMG, covering developments in regulations and compliance, data and trade. A series of regional indirect tax guides available through the page summarise the indirect tax regimes in individual countries.

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