ICAEW.com works better with JavaScript enabled.

VAT

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

Contents
Back to top
Street scene from the 1970s
Man at windowside table
Coffee cup and laptop
Exclusive

VAT: 50 years young

Stephen Dale reflects on how the past 50 years informs the future for the UK VAT system – the topic of ICAEW Tax Faculty’s conference on 22 May.
Read more
Exclusive

TAXguide 03/22: changes to VAT penalties and interest charges

This TAXguide provides details of the new penalties for late submission and payment of VAT returns, which takes effect for VAT periods starting on or after 1 January 2023.
Read more
Exclusive

MTD and VAT

The first stage of HMRC's Making Tax Digital (MTD) programme focuses on VAT and imposes new requirements keeping on some VAT registered businesses and organisations from April 2019.
Read more

Features and articles

Exclusive Ways to tackle tax threshold unfairness
  • Article
  • 04 Apr 2024
Patricia Mock and Sally Campbell, co-authors with Bill Dodwell of a recent Tax Law Review Committee discussion paper, consider a range of principles to help inform future tax policy.
HMRC’s VAT online service for agents to be decommissioned
  • Article
  • 26 Mar 2024
Agents should use their agent services account to manage the VAT affairs of all clients going forward.
VAT registration threshold to increase
  • Article
  • 06 Mar 2024
Among the indirect tax Budget announcements is the increase to the VAT registration threshold from 1 April 2024. A new duty on vaping products will also be introduced as well as changes to airport passenger duty and landfill tax rates.
Exclusive A lightning bolt for the VAT Tour Operators Margin Scheme
  • Article
  • 27 Feb 2024
In the case of Bolt Services UK Limited, the First-tier Tribunal found that mobile ride hailing services fall within the Tour Operators Margin Scheme (TOMS). Ed Saltmarsh considers the implications of the decision for the industry and for the fate of TOMS itself.
VAT import one stop shop for Northern Ireland
  • Article
  • 23 Feb 2024
Businesses in Northern Ireland can now register for the scheme to account for VAT on goods sold to consumers in the EU or Northern Ireland.
ICAEW writes to the Financial Secretary to the Treasury
  • Article
  • 06 Feb 2024
Tax Faculty supplements ICAEW’s Spring Budget 2024 representations by writing to government on HMRC service performance and VAT simplification.
View all

Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax

Exclusive TAXguide 02/2024: Taxation of cryptoassets for businesses
  • Technical release
  • 28 Feb 2024
TAXguide covering the UK taxation of cryptocurrency held by businesses including corporation tax, stamp taxes, employment income and VAT.
Exclusive TAXguide 03/22: changes to VAT penalties and interest charges
  • Technical release
  • 13 Dec 2022
This TAXguide provides details of the new penalties for late submission and payment of VAT returns, which takes effect for VAT periods starting on or after 1 January 2023.
Exclusive TAXguide 20/20 New VAT ecommerce rules in EU from 1 July 2021 – how will they affect UK businesses?
  • Technical release
  • 23 Dec 2020
Major VAT changes are being introduced by the EU on 1 July 2021, just six months after the end of the UK’s transitional deal. Neil Warren provides guidance on the key changes that will take place.
Exclusive TAXguide 18/20: VAT MOSS – what happens following the end of the UK VAT MOSS scheme
  • Technical release
  • 11 Dec 2020
The UK has left the EU, with 31 December 2020 marking the end of the transitional deal that has been in place since 1 February 2020. The EU departure will mean important changes for UK businesses that sell broadcasting, telecommunication and electronic (BTE) services to non-business customers (B2C) inside the EU. Neil Warren provides guidance on the key changes that will take place.
TAXguide: 06/20 Spring Budget 2020
  • Technical release
  • 12 Mar 2020
Rishi Sunak delivered his first Budget of 2020 on 11 March. The Tax Faculty provides its summary of all the key tax announcements in this TAXguide.
View all

Insurance Premium Tax

Tolley's orange tax handbook, 2023/2024
  • Library book
  • 30 Sep 2023
Annual two-volume work containing the latest indirect tax legislation. It includes up-to-date legislation and technical material relating to value added tax, stamp taxes, insurance premium tax, landfill tax, aggregates levy and climate change levy.
ESG for SMEs: insurance premium rise key to change
  • Article
  • 26 Jul 2023
SMEs are slower to adopt ESG risks into their business strategies, but an increase in insurance premiums could give them the nudge they need to take action.
Draft Finance Bill 2022-23: indirect tax measures
  • Article
  • 21 Jul 2022
The draft legislation, released on 20 July, includes numerous pre-announced measures, except for the government’s response on alcohol duty.
Is it time to make VAT simple?
  • Article
  • 30 Mar 2022
It is 50 years since the Budget creating the Finance Act 1972 delivered a new, simple-to-operate tax to the UK. Neil Gaskell looks at why VAT is now due a major overhaul.
Autumn Budget 2021: Duties
  • Helpsheets and support
  • 02 Nov 2021
ICAEW's Tax Faculty provides a summary of the announcements in the 2021 Autumn Budget on duties, covering alcohol duties, excise duties, insurance premium tax, vehicle excise duties, tobacco duty and more.
Duties
ICAEW's Tax Faculty provides a summary of the announcements in the 2021 Autumn Budget on duties, covering alcohol duties, excise duties, insurance premium tax, vehicle excise duties, tobacco duty and more.

Podcasts, webinars and recordings

VAT exemptions for private schools and final CPD update
  • Podcast
  • 08 Sep 2023
In this ICAEW Insights episode, we discuss Labour’s proposals for removing VAT exemptions from private schools, as well as our final CPD update before the new regulations come into force.
VAT at 50, TAM Day and engaging in public practice
  • Podcast
  • 05 May 2023
On the latest ICAEW Insights podcast, we discuss the month’s key developments in accountancy.
Freeports
  • Webinar
  • 19 Oct 2022
This webinar from the Tax Faculty will provide details of the potential VAT and duty benefits of operating within a Freeport area.
New E-Commerce VAT regimes in the EU and UK
  • Webinar
  • 09 Jun 2021
From 1 July 2021, the existing Mini One Stop Shop (MOSS) scheme transitions to a new framework. This is the 2021 EU e-commerce VAT package. This webinar will provide an explanation of the new EU -ecommerce VAT regime.
View all

Markel Tax FAQs

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

Exclusive VAT liability for supply of locum services
  • Helpsheets and support
  • 09 Apr 2024
FAQ on what is the VAT liability of an opthalmologist's own Ltd company, when her services as a locum are supplied to another UK high street chain of opticians on a contractual basis.
Exclusive UK VAT treatment for goods sourced from overseas
  • Helpsheets and support
  • 04 Mar 2024
FAQ about a company selling goods within the UK, who has won a contract to sell goods to another UK company, and whether goods sent from an overseas source, direct to the company's customer in another overseas country, count as exports for UK VAT purposes.
Exclusive VAT on cost of a company celebration event
  • Helpsheets and support
  • 07 Feb 2024
FAQ on whether a VAT-registered company can reclaim the VAT incurred on the cost of throwing a party for select customers and suppliers to mark the company's 25th anniversary.
Exclusive Correcting an overclaim of VAT
  • Helpsheets and support
  • 04 Jan 2024
FAQ on how a business owner can correct an overclaim of VAT on the purchase of vehicles used for both private and business purposes.
Terms of use

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

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive VAT and trading premises
  • eBook chapter
  • 2024
  • Zeeshan Khilji
  • Property Tax Planning
Guidance on VAT in relation to trading premises, highlighting property tax planning opportunities.
Exclusive Making tax digital tracker
  • eBook
  • 2023
  • Emma Rawson
  • Making Tax Digital Tracker
The Tracker provides plain English guidance on the operation of MTD, with sections covering VAT, income tax, corporation tax and tax agents in relation to MTD. 
Exclusive Value added tax
  • eBook chapter
  • 2023
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on VAT in relation to business partnerships, including LLPs.
Exclusive Tax returns
  • eBook chapter
  • 2023
  • Robert Maas
  • Guide to Taxpayers Rights and HMRC Powers
A chapter on taxpayers' rights and HMRC powers in relation to tax returns.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

View all

eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive EU VAT compass 2023/2024
  • eBook
  • 2023
  • Fabiola Annacondia, IBFD
A reference guide to the VAT system of the EU. It includes the consolidated text of the current EU VAT Directive (No. 2006/112), as well as the texts of several other Directives in the field of VAT. Also included are summaries of more than 1,100 ECJ judgments in VAT cases, along with an overview of the VAT options that have been exercised by individual Member States.
Exclusive Taxation of companies in distress — United Kingdom
  • eBook chapter
  • 2023
  • Heydon Wardell-Burrus
A chapter examining the tax treatment of companies in economic and financial distress in the United Kingdom. Covers topics including the impairment of loans and other commercial receivables, treatment of losses, capital injections, tax deferrals, and liability to pay taxes.
Exclusive Value added tax
  • eBook chapter
  • 2023
  • Telegraph Media Group
A chapter providing practical guidance on various aspects of VAT administration. Includes coverage of rates, exempt supplies, registration, VAT invoices, filing of returns, input tax, motor cars and fuel, special schemes for retailers, the Flat Rate Scheme, cash accounting, annual accounting, VAT visits and inspections, penalties, appeals, and complaints.
Exclusive A guide to the European VAT directives
  • eBook
  • 2023
  • Julie Kajus, Ben Terra
Includes an introduction to European VAT (value added tax) 2023 and the integrated text of the VAT Directive and Implementing Regulation.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

View all

Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on VAT. A selection of recent books covering this topic is set out below.
Tolley's VAT cases, 2024
  • Library book
  • 2024
  • L. Fallon, A. Millar, E. Thompson
  • LexisNexis
An annual guide to VAT cases. This latest edition includes summaries of over 4,000 court and VAT Tribunal decisions from 1973 to 1 January 2024.
Tolley's value added tax, 2024-25 (1st ed.)
  • Library book
  • 2024
  • A. Millar, L. Fallon, E. Thompson
  • LexisNexis
An annual book summarising the current law and practice of value added tax, including relevant statutory instruments, tribunal and court cases, VAT notices, and HMRC Briefs. It is arranged by subject, with various aspects being covered in turn. Worked examples are included to clarify complex points.
Tolley's tax computations, 2023-24
  • Library book
  • 2023
  • Tolley's Editorial Team
  • LexisNexis
An annual volume presenting over 500 up-to-date examples illustrating the practical operation of the main UK taxes, as well as national insurance contributions. Includes detailed explanatory notes with full references to relevant statutes and HMRC material.
Tolley's taxwise, 2023-24
  • Library book
  • 2023
  • T. Agnew, et al.
  • LexisNexis
An annual two-volume set offering practical expert guidance on how to approach real-world tax computations. Brings together relevant points from current legislation, case law and other official material. Worked examples and detailed explanatory notes are included to illustrate complex points.
Tolley's orange tax handbook, 2023/2024
  • Library book
  • 2023
  • R. Cordara (ed.)
  • LexisNexis
Annual two-volume work containing the latest indirect tax legislation. It includes up-to-date legislation and technical material relating to value added tax, stamp taxes, insurance premium tax, landfill tax, aggregates levy and climate change levy.
Tolley's tax guide, 2023-24
  • Library book
  • 2023
  • S. Maxwell, J. Houghton
  • LexisNexis
An annual single-volume guide to various aspects of taxation in the UK. Includes sections on employment, pensions, trading, family, trusts, estates and more. Points are illustrated with worked examples and clear tables.
Value Added Tax, 2023-24
  • Library book
  • 2023
  • C. McGee
  • Claritax Books
This annual title offers practical, in-depth commentary on VAT. It is written at an intermediate level, aimed at tax professionals who do not specialise in VAT.
VAT at 50
  • Library book
  • 2023
  • Tolley Tax Team, K. Hall
  • LexisNexis
A brief digest looking back over the first fifty years of VAT in the UK, and considering what has changed during that time.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 091-23 Legislative reform of the Terminal Markets Order
  • Representation
  • 12 Sep 2023
  • PDF (209kb)
A representation dated 12 September 2023 to a consultation published by HM Treasury and HM Revenue & Customs on 18 July 2023.
ICAEW REP 081-23 Tackling umbrella company non-compliance
  • Representation
  • 30 Aug 2023
  • PDF (318kb)
A representation dated 29 August 2023 to a consultation published by HM Treasury, HM Revenue & Customs and Department for Business & Trade on 6 June 2023.
ICAEW REP 065-23 Construction industry scheme reform
  • Representation
  • 10 Jul 2023
  • PDF (250kb)
A representation dated 10 July 2023 to a consultation published by HMRC on 27 April 2023.
ICAEW REP 047-23 VAT energy saving materials relief
  • Representation
  • 31 May 2023
  • PDF (168kb)
A representation dated 30 May 2023 to a consultation published by HM Revenue & Customs on 15 March 2023.
View all

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.

VAT schemes
  • Website
  • 14 Dec 2023
  • GOV.UK
Information on the voluntary VAT schemes which exist to simplify the way some VAT-registered businesses calculate and account for VAT to HMRC.
VAT penalties and interest
  • Website
  • 04 Jan 2023
  • GOV.UK
Information from HMRC on penalties and interest which may apply when VAT Returns are submitted late, or when VAT or penalties are paid late.
Declaring goods and paying tax when using a Freeport customs site
  • Website
  • 20 Sep 2021
  • HMRC
Guidance for businesses on how to declare goods brought in or removed from a customs site, moved between different customs sites, moved with the same site, and when goods and services can be zero-rated for VAT.
VAT rates in the EU
  • Website
  • 01 Jan 2020
  • European Commission
Information from the European Commission on the different VAT rates that apply in respective EU Member States.
Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

View all

Watch a Tax Faculty webinar

Webinars and videos have been designed by the Tax Faculty to provide practical guidance to practitioners on important developments to tax practice and policy.

You can register for Tax Faculty webinars by visiting our events page.
Register now
Cameraman filming
Can't find what you're looking for?

The ICAEW Library can give you the right information from trustworthy, professional sources that aren't freely available online. Contact us for expert help with your enquiries and research.

Information

Some of the content on this web page was provided by the Chartered Accountants’ Trust for Education and Research, a registered charity, which owns the library and operates it for ICAEW.