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VAT

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

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Thought leadership

How to fix VAT

ICAEW explores the challenges and opportunities offered in reimagining VAT and it's application. Read about the history of VAT, the lessons that can be learned from outside the UK and the potential of digitalisation.
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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.
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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.
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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.
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Features and articles

Government considers new VAT relief for donated goods
  • Article
  • 15 May 2025
The government is seeking views on the introduction of a new VAT relief for donations of goods to a charity which can then be given away by the charity to those in need or used in delivering its services.
Why Trump is wrong to construe VAT as a tariff
  • Article
  • 28 Apr 2025
Recent US policy shifts suggest that President Trump interprets VAT as a tariff. For tax campaigner Dan Neidle, that is a significant misconception.
Security services businesses encouraged to check tax submissions
  • Article
  • 14 Apr 2025
HMRC is asking businesses who provide security services to check that the correct amount of income tax and national insurance contributions (NICs) are being paid in respect of their workers.
Exclusive Ideas for reforming VAT
  • Article
  • 03 Apr 2025
VAT prize-winners Sze Teen Wong, Cheryl Ong and Anna Poh point to international experiences to explain how the UK’s VAT system could be made simpler and more progressive.
HMRC turns spotlight on profit extraction schemes
  • Article
  • 01 Apr 2025
In its latest spotlight, HMRC warns companies not to use a scheme that uses advertising and marketing expenditure to reduce taxable profits and disguise employment income in the form of redeemable loyalty points.
HMRC increases interest rates for tax paid late
  • Article
  • 31 Mar 2025
As first announced at the Autumn Budget 2024, the interest rate charged by HMRC for late payments of most taxes and duties will increase from 7% to 8.5% from 6 April 2025.
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Practical guidance

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

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.
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Insurance Premium Tax

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.

Podcasts, webinars and recordings

VAT gets its day in court – again
  • Podcast
  • 30 Apr 2025
What do marshmallows and hair transplants have in common? Yes, they’ve both been subject to recent court cases regarding VAT treatment. And yes, this episode of The Tax Track is all about VAT.
Exclusive VAT on private school fees
  • Webinar
  • 12 Dec 2024
This webinar provides practical advice helping schools ready themselves for the new VAT rules.
How to fix VAT
  • Podcast
  • 29 Oct 2024
In this episode we’ll be talking about the problems with VAT and why ICAEW is launching a new campaign, How to Fix VAT.
Corporate reporting update and VAT on private hire vehicles
  • Podcast
  • 06 Jun 2024
In this episode of Accountancy Insights, we discuss important developments in corporate reporting, including amendments to UK GAAP, new standards IFRS18 and IFRS19, and the timeline for implementing IFRS S1 and IFRS S2.
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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 Balloon payment or supply of goods?
  • Helpsheets and support
  • 06 May 2025
FAQ about a client who is about to enter into a PCP agreement to buy an asset where the VAT is fully recoverable. There is an optional balloon payment, which has a 3-year initial period, but there is a question as to whether this purchase should be considered an outright sale from the outset.
Exclusive Proof of option to tax (OTT)
  • Helpsheets and support
  • 01 Apr 2025
FAQ about how a client company can prove to a third party their option to tax (OTT) a commercial property, that they intent to buy, and then make commercial property rentals to (non-charity) third party tenants.
Exclusive Voluntary period of VAT deregistration
  • Helpsheets and support
  • 05 Mar 2025
FAQ about whether turnover from before a client voluntarily deregistered for tax should be taken into consideration, now that taxable turnover has unxepectedly increased significantly.
Exclusive Place of supply - private education services and UK VAT
  • Helpsheets and support
  • 10 Feb 2025
FAQ from a private school, on the new VAT treatment of its fees from 1 January 2025, and whether the new rules apply to overseas customers who send their children to that school.
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 Making tax digital tracker
  • eBook
  • 2025
  • 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. Includes information on penalties which may be imposed for non-compliance with the MTD regime, as well as the appeals process.
Exclusive Value added tax 2024/25
  • eBook
  • 2025
  • Andrew Needham, St John Price
An accessible guide to current VAT law, written for both professional advisers and non-professionals. The content is updated in line with changes to legislation, new and revised guidance from HMRC on issues such as MTD, and relevant case decisions.
Exclusive The Flat Rate Scheme for Small Businesses
  • eBook chapter
  • 2025
  • Andrew Needham
  • Value Added Tax
This chapter covers VAT in relation to the Flat Rate Scheme for Small Businesses.
Exclusive The VAT return
  • eBook chapter
  • 2025
  • Andrew Needham
  • Value Added Tax
This chapter is designed to give a basic guide to the completion of the VAT return.
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.

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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 Town and parish councils VAT guide
  • eBook
  • 2024
  • Richard Strevens
A VAT guide for those engaged in administering the financial affairs of town and parish councils in England and community councils in Wales. It focuses on the typical range of activities that these local authorities will have.
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
  • Taxation of Companies in Economic and Financial Distress
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
  • The Telegraph Tax Guide
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.
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.

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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, 2025
  • Library book
  • 2025
  • 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 2025.
Tolley's taxwise, 2024-25
  • Library book
  • 2024
  • 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 value added tax, 2024-25 (2nd 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 guide, 2024-25
  • Library book
  • 2024
  • 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.
Tolley's orange tax handbook, 2024-25
  • Library book
  • 2024
  • 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.
Value Added Tax, 2024-25
  • Library book
  • 2024
  • 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.
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.
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 034/25 Electronic invoicing
  • Representation
  • 07 May 2025
  • PDF (254kb)
A representation dated 7 May 2025 to a consultation published by HMRC and Department for Business and Trade on 13 February 2025.
ICAEW REP 089/24 Finance Bill 2024-25: Clause 47 - Value added tax - Removal of exemption for private school fees
  • Representation
  • 11 Dec 2024
  • PDF (207kb)
A briefing for MPs on the Finance Bill by ICAEW Tax Faculty.
ICAEW REP 067/24 Applying VAT to private school fees
  • Representation
  • 13 Sep 2024
  • PDF (266kb)
A comment dated 13 September on the Applying VAT to Private School Fees and Removing the Business Rates Charitable Rates Relief for Private Schools Technical Note published by HM Treasury on 29 July 2024.
ICAEW REP 061/24 VAT Treatment of Private Hire Vehicles
  • Representation
  • 26 Jul 2024
  • PDF (187kb)
A representation dated 26 July 2024 to a consultation published by HM Treasury, HMRC, and the Department for Transport on 18 April 2024.
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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.

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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.
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