ICAEW.com works better with JavaScript enabled.

VAT articles

Articles written by experts from ICAEW related to VAT under the UK tax regime.

Displaying 1-30 of 174 results
INSIGHTS VIEWPOINT MTD for income tax: delays in changing VAT periods
  • Mar 2026
  • ICAEW Insights
Businesses and agents who are considering changing VAT accounting periods to align with Making Tax Digital (MTD) for income tax should be aware that HMRC may take longer than normal to approve the change.
INSIGHTS VIEWPOINT VAT recovery on share sales post Hotel La Tour
  • Mar 2026
  • ICAEW Insights
In December 2025, the Supreme Court brought the long-running Hotel La Tour (HLT) saga to an end, confirming long-standing principles of VAT recovery on costs related to share sales. ICAEW’s Tax Faculty explains the implications for businesses.
INSIGHTS VIEWPOINT Using an intermediary for the VAT import one stop shop scheme
  • Mar 2026
  • ICAEW Insights
From 1 April 2026, businesses wanting to use the VAT Import One Stop Shop (IOSS) scheme can register through an intermediary. Businesses established outside the EU and Northern Ireland must do so if they choose to use the scheme.
Exclusive TAX FACULTY The final chapter in the Hotel La Tour VAT saga
  • Feb 2026
  • Ed Saltmarsh
  • Taxline
The Supreme Court judgment in the Hotel La Tour saga confirms long-standing principles of VAT recovery on share sales, explains Ed Saltmarsh.
INSIGHTS VIEWPOINT Prepare for 2026/27: Businesses
  • Feb 2026
  • ICAEW Insights
April 2026 sees the start of Making Tax Digital (MTD) for income tax, changes to capital allowances and the construction industry scheme (CIS), and the introduction of a new VAT relief for qualifying donations of goods to charities.
INSIGHTS VIEWPOINT New guidance on VAT treatment of supplies of medical staff
  • Dec 2025
  • ICAEW Insights
HMRC has updated its position on the VAT treatment of the supply of temporary medical staff (locum doctors), and explained how businesses can claim a refund of overpaid VAT, in Revenue and Customs Brief 9 (2025).
INSIGHTS VIEWPOINT Agents with late VAT returns targeted by HMRC
  • Dec 2025
  • ICAEW Insights
HMRC is writing to agents with at least two overdue VAT returns and asking them to resolve the situation by 7 February 2026 or face action, including having their agent codes suspended.
INSIGHTS VIEWPOINT Budget: Changes made to VAT rules and processes
  • Nov 2025
  • ICAEW Insights
A new VAT relief for business donations of goods to charity and a significant change affecting suppliers of private hire vehicle (PHV) and taxi services were among the announcements made at the Autumn Budget 2025.
Exclusive FARMING AND RURAL BUSINESS COMMUNITY VAT status of poppadoms and impact on a farm shop
  • Nov 2025
  • Julie Butler
  • Farming and Rural Business Community News
As shown by the ‘Jaffa Cake’ and ‘marshmallow’ VAT status sagas, the charging of VAT on ‘marginal’ food supplies can cause ramifications in the confectionary industry with implications for farming. In Walkers Snack Food Ltd v CRC in the Upper Tribunal, the ‘Sensations Poppadom’ came under question as to whether it was zero or standard-rated. Some might argue that the name ‘Walkers Snack Food’ does not promote zero-rated food. And who doesn’t love all those products. For the farm shop that acts as village shop and supplier of ‘goodies’ for all the farm diversified activities of campsites, farm ...
INSIGHTS VIEWPOINT Extending deemed reseller rules to combat VAT fraud – can it work?
  • Nov 2025
  • ICAEW Insights
Amazon proposes a change to the rules for online marketplaces that would mean the marketplace collects VAT on all third-party sales. Ed Saltmarsh analyses the practicality of the proposal ahead of the Budget.
Exclusive TAX FACULTY ICAEW prize winners suggest how to fix VAT
  • Nov 2025
  • Tax Faculty
  • Taxline
The winners of ICAEW’s research prize recommend broadening the VAT base and utilising the resulting revenues to reduce the VAT rate and provide compensation for lower-income households.
INSIGHTS VIEWPOINT Reforming VAT could raise £80bn a year, says ICAEW
  • Nov 2025
  • ICAEW Insights
ICAEW is urging the government to consider a single rate of VAT with minimal exemptions. Such reforms will make it simpler to do business and generate billions for the UK economy.
INSIGHTS VIEWPOINT HMRC clarifies VAT treatment of insurance services
  • Nov 2025
  • ICAEW Insights
The recent First-tier Tribunal ruling in the Hastings Insurance Services Ltd case suggests that UK insurance intermediaries may be able to reclaim under-recovered input tax on overseas supplies made before 2024.
INSIGHTS VIEWPOINT ECONOMIC UPDATE International Trade Week: Imports and exports – who pays the VAT?
  • Nov 2025
  • ICAEW Insights
The rules governing import and export VAT are fraught with complexity. Mistakes can be a significant cost to businesses if they get this wrong. We answer some of the most frequently asked questions on VAT and trade.
INSIGHTS VIEWPOINT ECONOMIC UPDATE Economy explainers: how is property taxed?
  • Oct 2025
  • ICAEW Tax Faculty
Taxes on transactions in, and income from, land and buildings are a frequent topic for pre-Budget speculation. ICAEW’s Tax Faculty explains the rules currently in place for taxing property.
INSIGHTS VIEWPOINT ECONOMIC UPDATE Economy explainers: what is VAT?
  • Oct 2025
  • ICAEW Tax Faculty
Did you know that £1 in every £5 of tax collected by the government is VAT? ICAEW’s Tax Faculty explains how VAT works, the problems with the current system and what could be done to improve it.
INSIGHTS VIEWPOINT HMRC updates process for correcting VAT errors
  • Oct 2025
  • ICAEW Insights
HMRC has made digital notification the standard route for reporting most VAT return errors. Agents have been able to use the online error correction form since July 2025.
INSIGHTS VIEWPOINT Review supply chains for mini umbrella companies, says HMRC
  • Sep 2025
  • ICAEW Insights
HMRC is writing to employment businesses and recruitment agencies to ask them to check for and remove any mini umbrella companies (MUCs) from their supply chains.
INSIGHTS VIEWPOINT INSIGHTS SPECIAL AI case study: applying AI to VAT queries
  • Sep 2025
  • ICAEW Insights
Bevan VAT Consultancy has been using generative AI for the past six months. It’s a useful tool for summarising legislation and case law, but it’s not without its flaws.
INSIGHTS VIEWPOINT How to fix VAT: strategies for reform
  • Jul 2025
  • ICAEW Insights
Is there hope for a significantly reformed and improved UK VAT in the future or are we restricted to endlessly tinkering with the existing design? A panel discussion at ICAEW’s recent How to Fix VAT Conference explored the options.
INSIGHTS VIEWPOINT How to fix VAT: barriers to simplification
  • Jul 2025
  • ICAEW Insights
Regardless of whether you believe fixing VAT is best done by tinkering around the edges of the existing system or the nuclear option of a full-blown overhaul, the challenges surrounding changes should not be underestimated.
INSIGHTS VIEWPOINT New in the M&S Foodhall: a VAT dilemma
  • Jun 2025
  • ICAEW Insights
M&S’s new Strawberries & Creme Sandwich, inspired by the viral Japanese fruit sando, is dividing opinions on taste, and VAT treatment. We consider if the latest summer must-have is a sandwich, confectionery or a cake and what this means for VAT.
INSIGHTS VIEWPOINT HMRC changes its policy on VAT and investment costs
  • Jun 2025
  • ICAEW Insights
In Revenue & Customs Brief 4 (2025), HMRC has revised its policy on an employer’s entitlement to deduct VAT paid on services relating to the management of assets held by an occupational pension fund.
INSIGHTS VIEWPOINT ICAEW influences EU VAT simplification
  • Jun 2025
  • ICAEW Insights
How to grow: long-time ICAEW members have contributed valuable insights to the EU’s policy debate on how to simplify VAT. Two of them explain the rationale behind the Institute’s involvement.
Exclusive TAX FACULTY The VAT treatment of cryptoasset custodial services
  • Jun 2025
  • ICAEW
  • Taxline
In the first of a new series of articles on cryptoassets, members of ICAEW’s digital assets working party explain how UK VAT might apply to custodial services, and what businesses can do to manage their VAT obligations.
INSIGHTS VIEWPOINT HMRC updates its guidance on VAT and private schools
  • Jun 2025
  • ICAEW Insights
HMRC’s updated guidance explains how private schools can reclaim VAT incurred on services received before the business registered for VAT.
INSIGHTS VIEWPOINT Government considers new VAT relief for donated goods
  • May 2025
  • ICAEW Insights
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.
INSIGHTS VIEWPOINT Why Trump is wrong to construe VAT as a tariff
  • Apr 2025
  • ICAEW Insights
Recent US policy shifts suggest that President Trump interprets VAT as a tariff. For tax campaigner Dan Neidle, that is a significant misconception.
Exclusive TAX FACULTY Ideas for reforming VAT
  • Apr 2025
  • ICAEW
  • Taxline
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.
INSIGHTS VIEWPOINT HMRC turns spotlight on profit extraction schemes
  • Apr 2025
  • ICAEW Insights
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.
Displaying 1-30 of 174 results
Looking up the front of the Bank of England towards a blue sky.
Thought leadership

How to fix VAT

  • Hub page
  • 18 Nov 2024
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.
Browse resources