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UK VAT Guide covering - Banking, Insurance, Construction, Commodities, Charities, Private Hire Taxi, Crypto , Pension Schemes, Energy, VAT Accounting, Business Expenses, Import, Export, Reverse Charges Autumn Budget - VAT & Tax Changes UK VAT Guide - Comprehensive UK VAT Guide to Help Businesses - Large, Medium and Small UK VAT is primarily governed by Law ( VAT Act 1994) and is enhanced by case law and administered by the UK Tax Authority known as HMRC (Her Majesty's Revenue & Customs). VAT (Value Added Tax), is a consumption tax levied on goods and services at each stage of the supply chain, with the final cost being borne by the end consumer. VAT Registered Businesses will collect VAT (output) from customers and pay this to HMRC usually on a monthly or quarterly basis. VAT Registered Businesses can also fully recover the VAT they pay on their own purchases subject to any partial exemption restrictions . On this page you will find detailed VAT guides, articles and links to help you better understand the key issues around VAT and other indirect taxes and help your business stay VAT compliant. Please try our AI VAT Advisor which will provide guidance and key VAT information along with detailed summaries from the content of this site relating to VAT queries you may have. UK e Invoicing 1 April 2029 VAT Explained UK Carbon Border Adjustment Mechanism (CBAM) - 2027 Making Tax Digital - Self Employed & Landlords - From April 2026 VAT Explained VAT Registration Making Tax Digital Place of Supply Business Expenses VAT Invoicing VAT Accounting P&L - BS & VAT VAT - Risk Correcting VAT Errors Disbursements VAT Exemptions Importing & Exporting HMRC - (P2P) Procure to Pay (Accounts Payable) Risk Mitigation Explore Reverse Charges Salary Sacrifice & VAT VAT - Employee Expenses Bad Debt Relief Motor Vehicles & VAT Self Billing Agreements VAT Automation Selling a Business Debt - (Sale of Debt) Pension Schemes Opting to Tax Property Barter & Part Exchange Capital Goods Scheme Agents - Disclosed & Undisc Catering - Food & Drink Delivery of Goods Margin Schemes Intercompany Recharges Risk & Control Framework Business Risk Reviews Banks & VAT Barristers & VAT Charities & VAT Commodities & VAT Construction (CIS) & VAT Crypto Currencies Digital Services Global VAT Rates Energy & VAT Financial Services & VAT Insurance & VAT Intermediaries & VAT Limited Partnerships Online Market Places Supply of Staff & VAT Taxi Services & VAT UK Financial Services - VAT Explained. Explore Financial Services Product List and VAT Treatment Explore Are you Self Employed or a Landlord? Making Tax Digital Applies from 6 April 2026 Explore HMRC's Transformational Roadmap Enhanced Learning and AI Tools Read More No MTD for Corporation Tax E Invoicing Rollout Phase out of Govt Gateway Stricter Rules for Umbrella Companies VAT Number Checker VAT Groups VAT Rates - Good & Services VAT Schemes E Invoicing UK VAT IOSS Scheme Senior Accounting Officer HMRC - Climate Change Levy (CCL) Consultation - electrolytic hydrogen production, Read More VAT Risks Business Expenses & VAT Listed Places of Worship Grant Scheme - £25,000 Cap on VAT Recovery

VAT News - Get a round up of the latest UK, EU and Global VAT news and explore other pages where you will find UK and Global Country Guides, articles and much more. VAT NEWS - Stay up to date with the latest UK and Global VAT news, Indirect Tax news Industry News and articles. The world of VAT and GST is rapidly changing, driven by the increased focus on digitalisation, e-invoicing, and tax authority focus on the tax gap and harmonisation. The EU's VAT in The Digital Age package (VIDA) reforms will become mandatory from 1 July 2028 with e invoicing for B2B inter EU transactions becoming mandatory from 1 July 2030. The UK Chancellor announced as part of the 2025 Autumn budget that e invoicing will be mandatory in the UK for B2B and B2G VAT invoicing from 1 April 2029. E invoicing in particular has been mandatory for years in many South American nations such as Chile, Argentina, Brazil, Columbia and in some European countries such as Italy. European countries such as Germany, Romania, Poland have adopted mandatory e invoicing more recently. In Africa, Kenya, Nigeria, Egypt, Uganda and Tunisia have all adopted and implemented mandatory e invoicing. Outlined in the galleries below are summaries of the latest UK news items and Tribunal / Court cases in relation to VAT and there is a separate section for global news items, updates and court cases relating to VAT with relevant links provided. UK VAT News Mar 26 - The UK VAT Gap (difference between the VAT HMRC expects vs receives) widens by £3bn for 2024/25 from initial estimate of £8.9bn to £11.9. FTT - Feb 2026 Ruling that 5% VAT should apply to EV charging in Public Places where consumption is below 1000 kwh / month for a customer. Carbon Border Adjustment Mechanism - HMRC Technical Consultation on Draft Legislation open until 24 March 2026. UTT - Feb 26 - Upholds FTT decision in Lycamobile vs HMRC case confiming that payment for plan bundles are subject to VAT immediately and not when customers access or use associated benefits. Feb 26 - British Independent Retailers Association (BIRA) and coalition of key retailers and tax experts write to UK Treasury calling for consultation on online VAT reform. HMRC - Guidlines for Software Developers using Generative AI Products used for Tax & VAT Reporting Budget 2025, Climate Change Levy Exemption for electricity used in electrolysis to produce hydrogen and natural gas used as a source of carbon dioxide to produce sodium bicarbonate from soda ash will be exempt from the Climate Change Levy (CCL) From 2 Jan 2026, Online Taxi operators can no longer use the Tour Operators Margin Scheme loophole. VAT must be paid on full ride fare. (Not commission only) FTT - Rules that the supply of Locum (temporary medical staff) is exempt under 5, Group 7, Schedule 9, VAT Act 1994. ICAEW - Finance Bill Threat to Tax Advisors 2026 - Read ICAEW Article! Electronic Invoicing will be Mandatory in the UK from 1 April 2029 for all B2B transactions. Hotel La Tour vs HMRC - Supreme Court Judgement 17 December 2025 - Input VAT Recovery Sale of Shares. Autumn Budget UK 2025 - Key VAT & Tax Changes. HMRC Issues New VAT Grouping Rules For Overseas Establishments TSI Instruments vs HMRC (FTT) Recovery of Input VAT disallowed (non owner of the goods) HMRC - Issues GFC 13 - Help ensuring documents filed with HMRC are correct and complete. Input Tax - HMRC Late Claims Guidance Supreme Court - NHS Parking Trusts are a taxable person for VAT on car parking Hippodrome Casino vs HMRC (Court of Appeal) Standard PX Method Applies and not Floor Space. Prudential Assurance Co vs HMRC VAT Case - Tax Point for payments after entity has left VAT Group. JP Morgan Chase vs HMRC - Inter-group supplies (single or multiple taxable supplies) HMRC- Crackdown on the use of VAT Grouping in the Care Industry Capital Goods Scheme Adjustment Simplification HMRC - Issues (GFC 8) VAT Risk & Controls Framework for Organisations Barclays Services Corp vs HMRC Fixed Establishment Global VAT News Mar 2026 - From 10 April 2026, Gibraltar is introducing a new Transaction Tax of 15% on imported and locally Manufactured goods. The rate will rise to 16% in 2027 and 17% in 2028. Mar 26 - South Africa announces increase in VAT registration threshold from R1m to R2.3m and the voluntary registration threshold from R50,000 to R120,000, effective 1 April 2026. UAE Ministry of Finance - Feb 26 - Publishes E Invoicing Guidlines. Nigeria Revenue Service (Feb 26) Implementation time line guide for e invoicing (MBS) guide. British Columbia - From 1 October 2026 - Provincial Sales Tax (PST) applicable to Accounting, Architectural, Engineering, Security Services, Property Management Services. Also PST Exemptions for Basic Cable Television, Residential Landline Telephone Services, and some Clothing and Footwear items will be Eliminated. CJEU AG Brkan opinion on the VAT treatment for the Management of Credit where the loan has been sold (Securitisation). Where Credit Management Services continue to be provided by the original loan issuer, the services are not Exempt under art. 135(1) (b) EU VAT Directive. (Basically Taxable) Lebanon - VAT increased From 11% to 12% to fund increases in Public Sector Pay. OECD - Digital Continuous Transaction Reporting - Jan 2026 Mauritius Revenue Authority - Foreign suppliers of Digital or Electronic Services in Mauritius must register with the MRA and account for VAT in Mauritius EU Council agrees to levy 3 Euros on small parcels valued at less than 150 Euros entering the EU from 1 July 2026. UAE - Ministry of Finance - From 1 Jan 2026 -VAT Changes to Reverse Charge Invoicing & 5 Year Limit to Input Tax Recovery. RCV - Applies to Scrap Metal Trading From 14 Jan 2026. European Commission Releases Report "Mind the Gap" Estimating the EU VAT compliance gap is EUR 128bn. Portugal Introduces VAT Grouping for Tax Periods Starting 1 July 2026. This will allow VAT amounts owing and recoverable to be netted within the group. However inter-group transactions remain Vatable. Ireland - VAT Groups - Only Branches and Head Offices Established in Ireland Allowed. CJEU - Arcomet Towercranes - Transfer Pricing adjustments - Potentially Vatable India GST Reforms - 2025 Russian Ministry of Finance - Raising VAT rate From 20% to 22% from 1 Jan 2026. Sweden will Temporarily reduce VAT on Food From 12% to 6% from April 2026 OECD - Tax Administration and Digitalisation Report 2025 EU Council - EU Customs Framework Reform Argentina "Super VAT" Proposal Philippines - From 1 June 25, 12% VAT applies on Digital Services Consumed Locally. EU - New Rules on E Commerce Import VAT to Encourage IOSS use. Canada - Government GST/HST - US Tariff Relief for Businesses. EU - VAT in the Digital Age Package (VIDA) agreed.

VAT DIGITAL.COM - Global VAT News - UK , EU, Americas, Asia, VAT Compliance, VAT AI Advisor to answer your queries, Global VAT Rates , HMRC & VAT Case Updates, E Invoicing News and information. Making VAT Simple Making VAT Simple Vat Digital.Com Vat Digital.Com VAT DIGITAL.COM - UK & Global VAT News & Compliance UK & Global VAT News UK VAT Guides UK Tax News & Updates Country VAT Rates Country VAT Guides HMRC Updates E Invoicing News and Updates VAT Automation Guide VAT for Small Business VAT for Banking & Financial Services VAT for the Construction Industry VAT for the Energy Industry VAT AI Advisor - Online 24/7 VAT Accounting & VAT Recovery VAT Returns & E Filer Links VAT Risks & Controls VATDIGITAL.COM - Making VAT Simple VAT Digital AI - Advisor - Online 24/7 Demystifying VAT - Online 24/7 VATDIGITAL.COM - VAT Digital.Com making vat simple OECD Digital Continuous Transaction Reporting January 2026 Read More VAT Digital.Com making vat simple Financial Services VAT Banking - VAT VAT Explained Global VAT Guides UK VAT Guide VAT News Register For VAT Check a VAT Number is Valid Global VAT Rates VAT on Business Expenses Europe VAT Guide UK - VAT Invoicing Rules Finance - VAT Liability Table E - Invoicing Updates Mergers & Acquisitions VAT Construction - VAT P/L & VAT VAT Risk VAT Accounting Reverse Charges VAT Rates - Goods & Services Importing & Exporting VAT Groups Intercompany Recharges & VAT Selling a Business & VAT VAT Risk & Control Framework VAT Compliance Automation VAT & Food Banking And VAT Investment Banking Corporate Banking Retail Banking Private Banking Read More Partial Exemption Special Methods (PESM) VAT Allocation & Recovery MTD & VAT E2E Automation Interco Recharges & Reverse Charges Banking income - VAT Liability International Trade Fixed Establishment & VAT Grouping Risk Management & Controls E Invoicing

VATDIGITAL.COM - A leading global VAT news and compliance platform providing businesses and individuals with the latest VAT news and compliance guides and AI tools. VAT Digital. Com VAT Digital. Com VAT Digital. Com - Advertise or Sponsor us Demystifying VAT Making VAT Simple The idea for VATDIGITAL.COM was conceived out of the need to help Businesses owners, Entrepreneurs and Individuals access useful information and news about VAT easily and quickly from a single platform. The site has evolved and now provides information, VAT and Indirect Tax guides, tax tools and key links in relation to UK and Global VAT compliance. The site's inbuilt AI VAT advisor allows visitors to obtain detailed answers and guidance for specific queries in relation to VAT and GST 24/7. The site's development and provision of services is ongoing and continually evolving and will be enhanced to reflect key VAT and other general Tax trends. As founder, I hope you find our site informative and useful. Please follow us on Linkedin. Lastly If you would you like to advertise your business on this site or sponsor us, then please email: enquiries @vatdigital.com Anthony Ene - Founder VAT Digital AI VAT advisor online 24/7

Construction & VAT Guide - how VAT is applied in the Construction Industry for new buildings, renovations, etc. CIS and domestic reverse charges, VAT rates and much more Introduction The Construction of new buildings and renovations to existing buildings are normally charged at the Standard Rate of VAT 20%. Services of trades persons such as carpenters, plumbers, electricians etc are usually charged at the Standard Rate of VAT 20%. However there are instances where construction can be Zero Rated and no VAT charged. Buiding new houses and flats - Don't have to charge VAT for Materials and Labour (provided they meet the definition of a new house) = Zero Rated Construction of new qualifying dwellings and communal residential buildings, and certain new buildings used by charities = Zero Rated 0% Conversion for a housing association of a non-residential building into a qualifying dwelling or communal residential building = Zero Rated 0% Conversion (other than for housing associations) of a non-residential building into a qualifying dwelling or communal residential building and conversions of residential buildings to a different residential use = Reduced Rate 5% Renovation or alteration of empty residential premises = Reduced Rate 5% Approved alterations to listed dwellings and communal residential buildings, and certain listed buildings used by charities (rate shown with effect from 1 October 2012) = Standdard Rated 20% Alterations to suit the condition of people with disabilities = Zero Rated 0% Reliefs from VAT for disabled and older people. See (VAT Notice 701/7) Installation of energy saving materials; and grant funded heating system measures and qualifying security goods = Reduced Rate 5% (Energy-saving materials and heating equipment (VAT Notice 708/6) Development of residential caravan parks = Zero Rated 0% First time gas and electricity connections = Zero Rated 0% (Fuel and power (VAT Notice 701/19) Construction work on children’s homes = Zero Rated 0% Construction work on residential care homes = Zero Rated 0% Construction work on hospices = Zero Rated 0% Construction work on student accommodation = Zero Rated 0% Construction work on school boarding houses = Zero Rated 0% Installation of mobility aids for the elderly for use in domestic accommodation = Reduced Rate 5% Home improvements on domestic property situated in the Isle of Man = Reduced Rate 5% Isle of Man VAT Notice Home improvements available from: Note: There are several conditions that have to be met to be able to zero rate and apply reduced rates as above. Please refer to the attached HMRC notice Buildings and construction (VAT Notice 708) Construction Indu str y Scheme The Construction Industry Scheme is a HMRC process whereby Contractors working in the building and construction industry deduct tax from payments made to their subcontractors and pay the money deducted over to HMRC. To do this, contractors are required to register with HMRC. Subcontractors are not required to be registered but if they don't they will have tax deducted at the higher rate (not 20%) by their contractor making payments to them. The tax deductions are a made from the non materials portion of the amounts being paid. Contractors Sole Traders Limited Companies Partnerships Government Departments Local Councils Businesses spending £3M in a year on construction Note contractors can als o be subcontractors when the do work for other contractors Construction Industry Scheme (CIS) and Reverse Charge VAT Prior to 1 March 2021, subcontractors invoicing there VAT registered contractors for work done would as normal be required to include VAT at 20% on their invoices. From 1 March 2021 the domestic VAT reverse charge must be used for most supplies of building and construction services. The charge applies to standard and reduced-rate VAT services: For individuals or businesses who are registered for VAT in the UK Reported in the Construction Industry Scheme What does Reverse Charge Mean? It means that instead of charging VAT on your invoice to your contractor, you just show the net amount and add the words "Reverse Charge Applies", "Customer to Account for VAT" on the invoice. Your contractor will then be required to account for the VAT that you would normally have charged (Pre introduction of Reverse Charge Rules) on their VAT return in Box 1 (VAT on Sales) and also in Box 4 (VAT on Purchases). Therefore in effect the Contractor will not pay any VAT to HMRC as the Box 1 VAT amount payable will be cancelled out by the Box 4 VAT recoverable amount due from HMRC. Example: Subcontracor A has done work for £100,000 for Contactor B. Subcontractor A will include £100.000 on their invoice and will not include any VAT, just the words "reverse charge" "customer to account for VAT". The contractor will include £20,000 reverse charge output VAT (20% of £100,000) in their sales VAT (box 1) and £20,000 reverse charge input VAT recoverable in their purchase VAT (box 4) on their VAT return when they receive the invoice from subcontractor A. Therefore contractor A pays no VAT to HMRC. Also contractor B pays no VAT to HMRC as their VAT return will show £20,000 reverse charge output VAT payable and £20,000 reverse charge VAT recoverable from HMRC. So in effect a nill box 5 and no VAT to pay or recover from HMRC. When should Subcontractors use the Reverse Charge Procedure They must use the reverse charge for the following services: constructing, altering, repairing, extending, demolishing or dismantling buildings or structures (whether permanent or not), including offshore installation services constructing, altering, repairing, extending, demolishing of any works forming, or planned to form, part of the land, including (in particular) walls, roadworks, power lines, electronic communications equipment, aircraft runways, railways, inland waterways, docks and harbours, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence installing heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection systems in any building or structure internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration painting or decorating the inside or the external surfaces of any building or structure services which form an integral part of, or are part of the preparation or completion of the services described above - including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works When should Subcontractors not use the Reverse Charge Procedure Do not use the reverse charge for the following services, when supplied on their own: scaffolding hire (with no labour) carpet fitting making materials used in construction including plant and machinery delivering materials work on construction sites that’s clearly not construction - for example, running a canteen or site facilities extracting minerals (using underground or surface working) and tunnelling, boring, or construction of underground works, for this purpose drilling for, or extracting, oil or natural gas manufacturing building or engineering components or equipment, materials, plant or machinery, or delivering any of these to site manufacturing components for heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection systems, or delivering any of these to site the professional work of architects or surveyors, or of building, engineering, interior or exterior decoration and landscape consultants making, installing and repairing art works such as sculptures, murals and other items that are purely artistic signwriting and erecting, installing and repairing signboards and advertisements installing seating, blinds and shutters installing security systems, including burglar alarms, closed circuit television and public address systems For more information on how to apply Reverse Charges in the Construction Industry please refer to HMRC's Link below. Domestic reverse charge procedure (VAT Notice 735) -Contains public sector information licensed under the Open Government Licence v3.0. Construction and VAT - Comprehensive VAT Guide

Use these e-filer links to effectively bridge your excel spreadsheets and e-file your VAT returns to HMRC monthly or quarterly with ease. Making VAT Digital - e filer Links As part of HMRC's Making Tax Digital requirement, all VAT registered businesses are now required to keep digital records of their businesses transactions and file their VAT returns electronically to the UK Tax Authority HMRC. If you are looking for fast and simple bridging s olutions to file your spreadsheet or other software based VAT return calculations directly to HMRC, then you can use the links provided below access these. GoFile PWC Sheets The links on this page do not convey any endorsement, authorship or ownership by VATDIGITAL.COM of any of the sites visited or software listed. These e filers are listed on HMRC's website as approved. They have also been used by members of the team and are considered very user friendly.

VAT digital media - Global VAT, GST, E invoicing and Key Case Law updates from around the globe. Making Tax Digital - Landlords & Self Employed Applies from 1 April 2026 VAT Digital Media - Keep up to Date with the latest VAT, GST and E Invoicing News UK E Invoicing - Mandatory 1 April 2029

Find out how VAT works In South Africa including registering for VAT, VAT rules, standard rated, zero rated and exempt services, imports and exports and much more. South Africa VAT Introduction VAT (Value Added Tax) is a consumption tax levied on goods and services at the Standard Rate of 15% in South Africa. This rate is applied to taxable supplies. There are also supplies which are either zero rated or exempt. VAT Registration Threshold The VAT registration threshold is currently R1m and the voluntary registration threshold is R50,000. Note as of 1 April 2026, the VAT registration threshold as announced in the budget will increase to R2.3m and the voluntary registration threshold will increase to R120,000. Standard Rated Goods & Services (Taxable) Land and Buildings (fixed property) - Sale of Residential and Commercial property by property developers Professional services – construction/building, estate agents, consultants, architects, engineers, project managers, doctors, private hospital services, lawyers, plumbers, electricians and accountants. Most grocery items and foodstuffs such as meat, fish, white bread, snacks, most canned foods, cigarettes, perfume, medicines, cool drinks, cleaning materials, clothing, footwear, microwave ovens and other household consumables and appliances. Electricity, water and refuse removal. Accommodation, hospitality, tourism and entertainment – restaurant meals, hotel accommodation, liquor sales, arcade amusements, casino slot machines and gambling services, entrance fees to sporting events, theatre performances and film shows, guided tours, game drives and game hunting expeditions. Furniture, production machinery, installations, motor vehicles Telephone, internet, computer and other telecommunication services. Rental of goods and commercial property such as office space. Motor vehicles, repair services, lubrication oils and spare parts. Zero Rated Goods and Serves ( Zero rate of VAT) Basic Food supplies such as milk, eggs, rice, Fish in tin cans, Fruit and Vegetables. Note this excludes food prepared for immediate consumption such as sandwiches or drinks served in a restaurant. Crude oil, petrol, diesel International transport of goods or passengers from South Africa overseas and vise versa Services supplied in relation to land located outside South Africa Physical supply of services supplied outside of South Africa Farming Goods such as Seed, pesticides, fertilizers Exempt Goods and Services Financial services (such as the provision of credit, life insurance, the services of benefit funds such as medical schemes, provident, pension and retirement annuity funds); Residential accommodation in a dwelling (but not commercial holiday accommodation) Passenger Transport. Bus, Train, Taxi Educational services provided by recognised educational institutions such as primary and secondary schools, technical colleges, or universities which have been approved as public benefit organisations Childcare services provided at crèches and after-school care centres Detailed Information on VAT in South Africa can be found in the South African Revenue Service links below LAPD-VAT-G02 – VAT 404 Guide for Vendors LAPD-VAT-G03 – VAT 409 Guide for Fixed Property and Construction LAPD-VAT-G16 – VAT FAQs Supplies of electronic services

Bad Debt Relief is a HMRC process whereby VAT amounts invoiced to your customers and paid to HMRC can be recovered after the debt has been oustanding for 6 months. Introduction Bad debt relief allows a business to claim a refund of the output tax they have paid to HMRC when they do not receive payment from their customers. A refund can only be claimed when all the conditions have been met and must be repaid if the claimant subsequently receives payment from their customer. The relief is two-sided, in that the recipient of the supplies which have not been paid for is required to repay input tax claimed. When businesses make taxable supplies and include VAT on their invoices, they have to pay the output VAT to HMRC on their next VAT return regardless of whether they have actually received or collected the amount invoiced (including the VAT) from their customers. If it turns out that a customer cannot pay for the goods or services a business has invoiced them for, then this creates a problem as the output VAT has been paid to HMRC but the cash has not been received from the customer to fund this payment. This can create cash-flow problems especially where the amounts involved are significant. Bad Debt Relief In the event of the above situation, where debts become irrecoverable, HMRC will allow businesses to make bad debt relief claims to recover the output VAT they have paid but not recovered from the client. To be able to make a claim for Bad Debt Relief, businesses must satisfy a number of conditions. Note: Where customers have recovered the input VAT from HMRC that was invoiced by their supplier, this will have to be repaid. Conditions That Have to be Met to claim Bad Debt Relief The debt is over six months old. The debt has been written off in the refunds for bad debt account. The claimant has a separate refunds for bad debt relief account (which may be maintained outside normal accounting systems) containing the following information: The outstanding amount to which the claim relates. The period in which the tax was accounted for and paid to HMRC. The amount of bad debt relief claimed. The period in which the claim was made. The amount of VAT chargeable on each supply Any payment received for the supply The date and number of each invoice issued; if no invoice has been issued the supplier must detail the date, the name of the purchaser and the nature of the supply The debt is over six months old. The debt has been written off in the refunds for bad debt account. The claimant has already accounted for and paid the tax being reclaimed, via a VAT return or assessment. The value of the supply concerned cannot exceed the open market value. Time Limits for Making a Claim A claim for bad debt relief must be made within four years and six months of the later of the following: The date when the amount became due and payable; and The date of the supply. Other Key points Regarding Bad Debt Relief Claims Where Bad Debt Relief claims have been made and the customer subsequently settles the debt and VAT, then any VAT reclaimed using Bad Debt Relief will need to be repaid to HMRC. A debt cannot be written off in the refunds for bad debt account until six months from the date when the debt became due and payable. Who Can Make a Bad Debt Relief Claim The Individual or company who made the supply in the first place The new owners of a business that was transferred as a going concern where the new business owners have taken over the same business VAT registration number and there were existing bad debts of historic sales. Bad Debt Relief Exclusions No entitlement to Bad Debt Relief if value of supply is greater than the open market value Debt has been factored to a third party Bad debt relief is not available to businesses that use the cash accounting scheme or one of the retail schemes that allow the daily takings total to be adjusted for opening and closing debtors. Where import agents have paid import VAT on their customer’s behalf and are then not paid by their customers, there is no entitlement for the agent to claim bad debt relief in respect of the unpaid import VAT. (If the agent is not paid for the services he provides there may be an entitlement to bad debt relief subject to all conditions being met). Relief from VAT on bad debts (VAT Notice 700/18) -Contains public sector information licensed under the Open Government Licence v3.0. Bad Debt Relief - VAT Guide on the Recovery of VAT from HMRC

VAT Careers - What its like to work in VAT in different sectors, skills and experience required, job interview tips, top recruitment consultants , VAT job links CAREERS IN VAT VAT Digital. Com WORKING IN VAT JOB INTERVIEW TIPS RECRUITMENT CONSULTANTS MARKET & SALARY GUIDES

Read this guide and discover how VAT is applied and recovered when goods are imported into the UK and also the the VAT liability of good exported from the UK. Importing & Exporting Goods and VAT Importing Goods Goods imported into the UK will normally attract VAT at the same rate as goods purchased in the UK (20% or 5% reduced rate). The VAT payable to HMRC will normally have to be paid on entry to the UK or declared and paid on the VAT return of the business importing the goods if they are using the Postponed VAT Accounting Procedure. If you import goods into the UK you will need to make a customs declaration which can either be done by: The Business or individual Importing the goods A Transport / Freight Forwarder, Customs Agent or Broker or Parcel Operator who will bring the goods to the UK and / or make the necessary customs declarations on your behalf. Businesses bringing goods in to the UK will require and EORI number (Economic Operators Registration and Identification Number) which will need to be used when completing Customs Declarations. If you are using a freight forwarder, customs agent etc, you will need to provide them with your EORI number and details of the goods you require to be imported. Note: if you are bringing goods into the UK for personal use only, you will not require an EORI There are different ways UK VAT registered businesses can pay for VAT on goods imported into the UK. These are listed below. Paying immidiately on importation Use the Postponed Accounting Procedure Deferring the payment using a Duty Deferment Account Paying VAT Immediately If you pay VAT on Goods imported immediately you will be able to recover the VAT on your VAT return using a VAT import Statement as evidence. You can also use immediate payment methods such as: Approving a payment through your online bank account Online or telephone banking Card CHAPS (Clearing House Automated Payment System) Bacs (Bankers Automated Clearing System) Postponed VAT Accounting Procedure Using the postponed accounting procedure, allows VAT registered businesses to include the import VAT payment as part of their VAT return and has the added benefit of being able to reclaim the VAT on the same return. In effect resulting in zero payment to HMRC. Postponed VAT Accounting Requirements: Goods imported are for use in the business (or can be a mixture of business / non business where the split is unknown at the time of import) Your VAT registration number must be included on your Customs Declaration Inform your Frieght Forwarder or Customs Agent that you wish to use postponed VAT accounting so that they can complete the customs declaration appropriately You do not have to directly inform HMRC you are using postponed VAT accounting Note: You must be the legal owner of the goods to recover the VAT Duty Deferment Procedure Alternatively, for businesses that have larger and regular imports, they maybe able to defer paying import VAT by setting up a Duty Deferment Account with HMRC. This will allow HMRC to collect the VAT automatically from their account. A duty deferment account lets the importer (or someone who represents them) make one payment a month through Direct Debit instead of paying for individual consignments. You do not need to apply for a deferment account to defer import VAT if you are using postponed VAT accounting for imports. To complete your application you’ll need your business’s: EORI number Name associated with your EORI number Registered company number (if this applies), in the UK this will be from Companies House UK address associated with your EORI number Correspondence address VAT number (if this applies) Company directors’ and officials’ details, including date of birth Person responsible for customs authorisations, their details and practical customs experience Your estimated debt Note there are strict rules surrounding the operation of duty deferment accounts and if not adhered to can lead to goods not being cleared by HMRC. You will need a C79 importation certificate to reclaim the VAT on your VAT return. See below link detailing the procedure. Check how to get your import VAT certificate (C79) Recent FFT case - Piramal Healthcare UK Limited vs HMRC Piramal Healthcare UK Limited (“Piramal”) is a pharmaceutical company based in the UK. As part of its business, it imports pharmaceutical goods into the UK and, historically, has paid the import VAT on the value of those goods. The supplier does not make any charge for the supply of the goods and remains the owner of the goods. Having provided certain services in relation to the goods, they are either sent back to the customer, sent to third parties for further processing or sent to clinics for use in clinical trials. Until 2018, Piramal claimed the import VAT which it paid as an input tax credit on its VAT returns. HMRC issued Piramal with a formal decision that it was not entitled to claim credit for the import VAT as the goods: Were not used for the purposes of Piramal’s business in the sense that the cost of the goods did not form part of any onward supply made by Piramal. HMRC made an assessment to recover VAT which they considered Piramal had over-claimed and also withheld a repayment for import VAT. Key Points: Piramal did not itself make any onward supply of the goods. The only supply it made was the supply to the owner of the goods of the services which it provided. Piramal did not own the goods and the ownership remained with the customer The UK.s FTT ruled that import VAT can only be recovered if the imported goods are used as a cost component of an onward supply. (Basically the VAT paid must be attributable to an onward supply). This was not the case with Piramal. So to ensure the import VAT incurred can be recovered: The goods imported must be for use in your business (cost component to make onward taxable supplies) Have the right to dispose of them (usually as owner) and importer of record See Full Case decision here: TC 08966.pdf (tribunals.gov.uk) Another recent case is (TSI Instruments Limited v The Commissioners for HMRC) See below https://caselaw.nationalarchives.gov.uk/ukftt/tc/2025/1278 Exporting Goods VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK Northern Ireland to a destination outside the UK and EU . You can zero rate the sale, as long as you get and keep evidence of the export, and comply with all other conditions. You must also make sure the goods are exported, and you must get the evidence within 3 months from the time of sale. This can be longer for goods that need processing before export and for thoroughbred racehorses. The time of sale is the earlier of the day you: send the goods to your customer get full payment for them You must not zero rate sales if your customer asks you to deliver them to a UK address.

VAT Guide for Ireland including. How VAT works in Ireland including the rules around VAT Registrtaion, VAT Recovery, Importing and Exporting and much more. Introduction Value-Added Tax (VAT) is a tax, which is payable on sales of goods or services within the territory of the Member States of the EU. The tax, in all cases, is ultimately payable by the final consumer of the good or service. Each party in the chain of supply (manufacturer, wholesaler and retailer) acts as a VAT collector. They collect VAT from their customer and include that VAT in their VAT return to Revenue. When returning the VAT collected, they can reclaim as appropriate, VAT which has been charged to them by their suppliers. Current VAT Rates (Effective 1 January 2023) Standard rate (23 %) Reduced rate (13.5 %) Second reduced rate (9 %) Livestock rate (4.8 %) Flat-rate compensation percentage for Farmers (5 %) Accountable Person An accountable person is a taxable person (for example, an individual, partnership, company) who: supplies taxable goods or services in the State and is registered or required to register for VAT. As such they are required to charge VAT in the State. Taxable Person A taxable person is any person who independently carries out a business in the European Union (EU) or elsewhere. It includes persons who are exempt from Value-Added Tax (VAT) as well as flat-rate (unregistered) farmers. Exemption From VAT Where a taxable person supplies only exempt goods or services, they are not generally entitled to register for Value-Added Tax (VAT). However, in specific circumstances the trader may be required to register and account for VAT. This occurs where the trader makes intra-Community acquisitions , or is in receipt of services from abroad. Likewise, a taxable person who also supplies taxable goods or services may be required to register for VAT. However, VAT registration relates to your taxable supplies. Therefore, if you carry out both exempt and taxable activities, you can only reclaim VAT relating to your taxable activities. VAT Registration Generally, you must register for VAT if you are an accountable person . A person carrying out only exempt activities or non taxable activities may not register for VAT. However, a person carrying on exempt activities or non taxable activities may have to register for VAT in certain situations, for example: acquiring goods from other Member States or receiving services from abroad . If you have set up a business but have yet to supply taxable goods or services, you may reclaim VAT on your start-up costs. However, to do so you are required to register for VAT. This will enable you to obtain credit for VAT on purchases made before trading begins. Traders whose turnover is below the VAT thresholds, farmers and sea fishers are not generally obliged to register for VAT. They may, however, elect to register for VAT. VAT Registration Thresholds Value-Added Tax (VAT) registration is obligatory when your turnover exceeds, or is likely to exceed, the VAT thresholds. The thresholds depend on your turnover in any continuous 12 month period. The threshold for intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic (TBE) services relies on your turnover in a calendar year. If the turnover is less than a threshold limit, you may elect to register for VAT. The principal thresholds are as follows: €37,500 in the case of persons supplying services only. €10,000 for taxable persons making mail-order or intra-Community distance sales of goods and cross-border TBE services into the State. The threshold is calculated by taking account of the suppliers, or deemed suppliers , total value of intra-Community distance sales of goods and cross-border TBE services to customers in all European Union (EU) Member States. The threshold only applies where the supplier is established and has their permanent address, or usually resides, in only one Member State. Otherwise the supplier must register for Irish VAT in respect of such supplies. See the intra-Community distance sales of goods and the Electronically supplied services webpages for further information. €41,000 for persons making acquisitions from other EU Member States. €75,000 for persons supplying goods. €75,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods. However, while all goods and services are part of the turnover, the 90% does not necessarily include all goods sold. The 90% figure does not include goods which you: sold at the standard or reduced rates and manufactured or produced from zero rated materials. A person, while not established in the State, needs to register and account for VAT if that person supplies: taxable goods to ‘taxable customers’ in the State or services to ‘taxable customers’ in the State. This applies irrespective of the level of turnover. How is Turnover Determined Your turnover figure may exceed the threshold limit. However, you may not be required to register for VAT. For registration purposes, the turnover figure may be reduced by the amount of VAT paid on stock bought for re-sale. You should use this reduced turnover figure to see if you can register for VAT. This adjusted turnover figure is used only for the purposes of determining your turnover for registration for VAT. Example Michael has an annual turnover of €80,000. He has incurred VAT on his stock purchased for re-sale in the amount of €11,220. Michael can reduce his turnover figure by the €11,220 when determining whether he has breached the threshold. €80,000 minus €11,220 equals €68,780. As the adjusted turnover is below the registration limit of €75,000, he is not obliged to register. Requirement to Register where Goods or Servic es Purchased from Abroad Usually the following persons would not need to register for Value-Added Tax (VAT) in the state: Non VAT registered businesses Exempt businesses such as banks Public bodies such as local authorities, State agencies and semi-State bodies Farmers, fishers or race horse trainers. But they may have to register and account for VAT, for received taxable services from outside the State or Intra-Community Acquisitions. Exempt and Certain Non Taxable Persons Acquiring Goods Within the EU Exempt persons and certain non-taxable persons are obliged to register and account for VAT in certain situations. Such situations include where they buy or are likely to buy, goods from other Member States. You need to register when the goods exceeds, or are likely to exceed €41,000 in any 12 month period. Flat-rate farmers, fishers and race-horse trainers may be required to register in respect of receiving such goods, subject to the relevant threshold. They can retain their unregistered status in respect of their farming or fishing activities. You may not reclaim VAT if you are an exempt or non-taxable person. Exempt and Certain Non Taxable Persons Receiving Services From Abroad (Reverse Charges) Exempt persons and certain non-taxable persons must register and account for VAT if they receive taxable services from abroad. This obligation arises irrespective of the value of those services. Flat-rate farmers, fishers and race-horse trainers need to register if they receive such services. They can retain their unregistered status in respect of their farming or fishing activities. You may not reclaim VAT if you are an exempt or non-taxable person. Paying VAT on Services Received from Abroad (Reverse Charges) You must pay VAT on the invoiced amounts at the appropriate Irish VAT rate to Revenue in your periodic VAT return. You may qualify to reclaim the VAT at the same time. By passing your VAT number to the supplier, you will avoid paying VAT in the other Member State. For M ore Information on Registering f or VAT Click this Link Registering for VAT Modernisation of VAT & Implementation of e - Invoicing The Irish Revenue has published a report on the Modernisation of VAT and the Implementation of e - invoicing in Ireland including the adoption of VIDA and a phased approach for e - invoicing from 1 November 2028. Please see the report link below. VAT Modernisation - Implementation of eInvoicing in Ireland Other Key Areas of VAT Charging VAT VAT Invoices Financial Services Agriculture Import & Export e commerce Accounting for VAT Property VAT on Services VAT on Goods VAT Recovery Non Established Credit Notes Self Billing VAT Records Construction Rev Chgs CG Scheme Retail Export Ireland-VAT - Guide on Key Aspects of Irish VAT