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VAT

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

In this section

Practical guidance

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

TAXguide 18/20: VAT MOSS – what happens following the end of the UK VAT MOSS scheme

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 21/17: The tax implications of Brexit

Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.

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. This guidance has been updated to include changes introduced on 1 January 2019. Read a summary here, Tax Faculty members can download the full guide.

TAXguide 04/09: Money laundering - supplementary guidance for tax practitioners

Guidance approved by HM Treasury on the prevention of money laundering and the countering of terrorist financing for those providing tax services in the UK issued on 25 June 2009 by ICAEW's Tax Faculty. This TAXguide is to be read as an Appendix to the CCAB anti-money laundering guidance.

Features and articles

Share your experiences of digital links and MTD for VAT

11 January: The requirement for digital links within MTD for VAT software starts in April 2021, following the end of the soft-landing period. ICAEW’s Tax Faculty is urging HMRC to provide more guidance and is asking for examples of difficulties faced in implementing the requirement.

VAT and the sharing economy

16 December 2020: As HM Treasury asks for evidence on how VAT is working with the sharing economy, ICAEW’s Tax Faculty asks whether the current rules for charging VAT work in the face of new ways of working?

Tax news in brief

16 December 2020: Highlights from the broader tax news this week includes: support from HMRC on withdrawal of VAT retail export and airside tax-free shopping scheme; the opening of an online portal for businesses using postponed VAT accounting to download statements; and data on how the enhanced CEST tool has been used in its first 12 months.

Webinars and recordings

Tax Round-up 2020

This webinar from the Tax Faculty provides 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.

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.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 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 Core Accounting and Tax Service.

VAT Government and public bodies

HMRC Manual providing guidance on VAT as it applies to local authorities and other government and public bodies.

Charities

A full chapter on the taxation of charities in the UK in this title aimed at finance and business undergraduate students.

Revenue Law: Principles and Practice

Textbook aimed at finance and business undergraduate students, providing readers with an understanding of the law relating to all areas of UK taxation.

Value added tax 2020-21

An accessible guide to current VAT law, written for both professional advisers and non-professionals.

VAT Health

HMRC Manual covering all the VAT exemptions which are available for supplies of healthcare by health professionals and health institutions.

VAT Food

HMRC Manual providing guidance on determining the liability of supplies of food allowed by Group 1, Schedule 8, VATA 1994.

Value added tax

Chapter providing expert guidance on VAT in relation to business partnerships, including LLPs.

VAT Export and removal of goods from the UK

HMRC Manual providing guidance on the VAT treatment of goods supplied for export and removal from the UK.

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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.

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 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.

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.

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.

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

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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Further support

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