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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

Changes to retail exports and duty-free shopping

17 September 2020: Duty-free shops will return from 1 January 2021, but international visitors to Great Britain will no longer be able to buy and take with them tax-free purchases from other retailers in the country as the VAT retail export scheme is scrapped.

Making Tax Digital for Income Tax and VAT

Making Tax Digital (MTD) was first talked about almost five years ago now by HMRC as they believe avoidable mistakes by the taxpayer is costing the Exchequer billions each year. In fact, they have estimated this figure at £8.5 billion in the 2018/19 tax year alone.

The HMRC digital roadmap

Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.

Webinars and recordings

Tax Round-up 2020

This webinar from the Tax Faculty will provide a round up of all the measures that are under review and subject to consultation and how the faculty will be responding.

TAXbite: MTD - bank feeds

An explanation of how bank feeds can be used as part of a business' journey towards meeting the Making Tax Digital requirements for its accounting records.

Practical guidance

TAXguide 04/09

Money laundering: supplementary guidance for the tax practitioner

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.

Markel 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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Daily Telegraph tax guide 2018, The: Understanding the tax system, completing your tax return and planning how to become more tax efficient

Guide to completing a Self-Assessment tax return for 2017/18, with advice and worked examples covering key aspects of personal taxation in the UK

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.

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.

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.

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.

Penalties and surcharges

Section covering the penalties for late VAT registration, unauthorised issue of tax invoices, and late, fraudulent or erroneous tax returns.

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.

Recovery of VAT cross-border

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

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ICAEW Rep 62/18

ICAEW's Tax Faculty responds to the VAT registration threshold call for evidence published by HM Treasury on 13 March 2018.

ICAEW Rep 31/18

VAT Postponed accounting letter to FST

ICAEW REP 29/18

MTD - Interest harmonisation and sanctions for late payment

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.

Software suppliers supporting Making Tax Digital for VAT

List of companies who are supplying suitable software to support the MTD for VAT pilot. These suppliers have tested their products in HMRC's test environment and have already demonstrated a prototype of their software to HMRC.

VAT Notice 700/22: Making Tax Digital for VAT

Notice giving updated guidance on digital record keeping and return requirements of MTD for VAT. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, and what counts as ‘functional compatible software’.

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.

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