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VAT

Frequently asked questions from Markel Tax on value added tax.

Note these FAQs were correct at the time of going to press and should be considered as principles based guidance. To check current validity, call the Markel Tax helpline.

VAT and charitable donations

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May 2022

FAQ on whether money donated to charity from the sale of luggage and accessories falls outside the scope of VAT.

VAT groups

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April 2022

FAQ on what to do in the interim period while HMRC is processing and application to form a new VAT group.

VAT on service charge

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March 2022

FAQ on the liability for VAT on a service charge applied by a restaurant, depending on whether the charge is optional or compulsory.

Place of Supply and other VAT implications

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February 2022

FAQ on what counts at the Place of Supply (POS) for goods moved between two continental European countries, by a UK based contractor.

VAT on commission income

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January 2022

FAQ on whether the commission income on sales of third party art by a gallery owner falls below the VAT threshold.

VAT exemption for services provided to a charity

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December 2021

FAQ on the VAT status of a charity that is employing the services of a carpet fitter who is installing carpets in an existing commercial property.

Electric charging points

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November 2021

FAQ on what rate of VAT should be applied when a client charges an electric vehicle using a commercial charging point at a petrol station, whilst travelling for business.

Time limits for correcting VAT errors

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October 2021

FAQ on the rules around time limits for correcting VAT errors and backdated VAT claims, looking at the case of a company who received invoices for 6 years worth of VAT from a previously non-VAT registered supplier.

VAT – Pre-registration

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September 2021

FAQ about a client who has gone over the VAT registration threshold for the first time and wants to join the Flat Rate Scheme immediately, but there is concern that they won't be able to get any pre-registration VAT back unless it meets the FRS capex criteria.

VAT – Imports

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August 2021

FAQ about whether a client, who bought and imported some furnishings from the EU, should have paid VAT on the imports. They were not charged VAT by the supplier or freight carrier.

VAT – Option to Tax

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July 2021

FAQ about the VAT implications for a client who is a residential property developer looking to buy a plot of land where the vendor has opted to tax, and whether the client can disapply the vendor’s OTT.

VAT – Making Tax Digital

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June 2021

FAQ about a ‘soft landing’ for not having digital links when submitting VAT returns to HMRC. The firm in question has two strands to their business and for one of them, the accounts data has to be entered in to the MTD portal manually.

Construction Reverse Charge

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May 2021

FAQ on how the new domestic reverse charge (DRC) VAT rules (which came into force on 1 March 2021) apply within the Flat Rate Scheme.

VAT and hair salons

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April 2021

FAQ on the VAT implications for a hairdressing business investigating cutting costs by restructuring and switching their current employees to self-employed staff.

Construction Reverse Charge

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March 2021

FAQ on services reportable under the Construction Industry Scheme (CIS), concerning whether a client who supplies labour to building firms should be charging VAT after 1 March 2021.

VAT on fee paid to a finance intermediary

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February 2021

FAQ on the VAT liability for the fee that an estate agent receives every time he passes on a client to his adviser contact, who arranges their mortgages for them.

VAT post Brexit

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January 2021

FAQ on how VAT rules have changed for British companies selling UK stock globally, now that the United Kingdom has left the European Union.

Are supplies VAT-exempt for a practitioner of alternative therapies

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November 2020

FAQ on whether a medically-trained therapist, providing services such as meditation techniques to improve clients' mental health, can claim a VAT exemption for supplies under the health exemption, even though they are not a member of any health professional body.

VAT changes in response to the coronavirus pandemic

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August 2020

FAQ about whether my café client can benefit from the reduced VAT rate and the Eat-Out-to-Help-Out scheme, introduced in response to COVID-19.

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