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Introduction There are a number of key VAT Margin Schemes that are available to businesses which allows them to only charge VAT on the difference between the selling price and the price they paid for second hand and other specific goods. Each of these schemes is governed by strict eligibility and operational rules and summaries of the main schemes are listed below with links at the end to the specific HMRC notices which provide in depth detail about each scheme. VAT Margin Scheme VAT margin schemes tax the difference between what you paid for an item and what you sold it for, rather than VAT being payable on the full selling price. You pay VAT at 16.67% (one-sixth) on the difference. You can choose to use a margin scheme when you sell: Second-hand goods Works of art Antiques Collectors Items See More information here VAT margin schemes VAT Margin Scheme for Second Hand Vehicles There are different rules if you buy or sell second-hand vehicles under a margin scheme, You can use a margin scheme to account for VAT on the difference between the price you pay for a second-hand vehicle and the price you sell it for, instead of the full selling price of each vehicle. See More information here Using the VAT margin scheme for second-hand vehicles Global Accounting VAT Margin Scheme The Global Accounting Scheme is a simplified version of the VAT Margin Scheme above. You can use this scheme to account for VAT on the margin between your total eligible purchases and total eligible sales, and not the margin on the sale of individual items. This scheme is ideal for businesses that bulk buy and sell small value items. See More information here Using the global accounting VAT margin scheme Other VAT Margin Sc hemes There are other VAT Margin Schemes for different goods and scenarios and the HMRC guidance is listed below. Using a VAT margin scheme if you’re an agent Using the auctioneers' VAT margin scheme Tour Operators Margin Scheme (VAT Notice 709/5) Selling houseboats and caravans if you use a VAT margin scheme -Contains public sector information licensed under the Open Government Licence v3.0. Margin Schemes

Disbursements and VAT - What are disbursements and HMRC VAT Rules Introduction Disbursements are payments made to suppliers by a business on behalf of its customers and then recharged back to their customers when they invoice them. VAT registered businesses can treat such payments as disbursements for VAT purposes and thus not charge VAT on these costs when billed on to clients. This is on the basis that they are acting as their customers agent and simply making payment for services on their behalf. To be able to do this, a business must ensure they meet the conditions listed below: You paid the supplier on your customers behalf and acted as an agent for your customer Your customer received, used or had the benefit of the goods or services you paid for on their behalf It was your customer’s responsibility to pay for the goods or services, not yours You had permission from your customer to make the payment Your customer knew that the goods or services were from another supplier, not from you You show the costs separately on your invoice You pass on the exact amount of each cost to your customer when you invoice them The goods and services you paid for are in addition to the cost of your own services It’s usually only an advantage to treat a payment as a disbursement if the supplier didn’t charge VAT, or if your customer can’t reclaim the VAT. Note: If a suppliers invoice contains your customers details (Name and address), then you cannot recover any of the VAT as it is not your input VAT. So if a customer asked you to purchase a web hosting service on their behalf and the above conditions are met, then this would be a disbursement for VAT What is not a Disbursement Normal business costs incurred while providing services to customers (postage, Taxi Travel, Airline tickets) and then recharged on to customers etc are not disbursements for VAT purposes as the expenses are for the businesses use and not the customer. If these costs are recharged, then VAT must be added to the invoice to the customer even where the business originally incurred VAT on those costs. So in effect the gross cost (cost incurred including 20% VAT) will be recharged to the customer plus an additional 20 % VAT levied for the direct supply to the customer. -Contains public sector information licensed under the Open Government Licence v3.0. Disbursements and VAT

Comprehensive guide on how to prepare for Interviews for VAT roles, key areas of knowledge required, experience requirements and much more. Key VAT Terminology "Take the heavy lifting out of your role search!" Interview Process The Job Market for VAT Roles has been busy and robust over the past few years and one of the key changes in the interview process has been how interviews are conducted. As a result of the move to more flexible working (home working) following the pandemic, many first, second and even some final interviews can be held over Teams, Zoom and other conferencing platforms. Whilst this may save time travelling to prospective employers, it will mean adapting to online face to face interviews rather than meeting face to face in person. Some candidates will prefer this others will not. Interviews Always research the target company extensively as this will convey dilig ence and a keen interest in the role. Focus your interview preparation on the requirements of the role by being ready to articulate how your experience and skills are a great fit for the role. Revisit and revise your UK and EU VAT Technical knowledge. See the key VAT Terms button for more guidance on areas in VAT that you should be familiar with. Be prepared to answer technical questions on real or hypothetical VAT advisory and compliance scenarios. Be up to date with current industry issues and case law. Look as professional as you would going for a role at the prospective Employers offices. Test your audio is clear and camera is working properly prior to the interview. Bad audio can impact the interviewers perception. Always be on time as keeping your interviewer waiting does not give a good impression. Walk through your CV many times prior to the interview as this will ensure you can do this clearly and confidently when asked to do so during the interview. Listing your strengths during an interview is sometimes not enough and as such you need to be prepared to demonstrate how these strengths were exhibited while working day to day and on projects. Be prepared to respond to questions like "why do you feel you are the right candidate for the role", "What skills and efficiencies would you bring to this role", What are the 3 or 4 key things you would do if you got the role", " How do you deal with conflict and difficult situations", " Why are you leaving your current role" Giving realistic answers for weaknesses and what you have done or intend to do to improve will impress potential employers. Collaboration is a key skill in the modern digital age not only for BAU but for projects so ensure you emphasise and demonstrate how well you can do this. Digital Skills have become an increasing focus over the past couple of years so it will help if you are up to date on the latest developments such as blockchain, Crypto, NFT's etc and also how VAT is currently applied or will be applied to these assets in the future. Always smile and be ready for the usual introductory conversation as this will help the interviewer and yourself settle into the more formal interview. Also first impressions as we know can have a impact on whether you move to the next round. Always prepare a list of questions to ask that will help you understand the department, team structure, why the role is vacant, current issues, ongoing projects, to find out more about your potential line manager, flexible working policy etc. Be prepared for the good cop and bad cop interview where one of the interviewers seems calm and warm and the other more stern and interrogating. The purpose of these interviews can be to see how well you handle pressure or can just be innocent in that this is the natural personality style of the interviewers. At the end of the interview it's always good and polite to ask what the next steps are especially if you have not been told. This will help you manage expectations re timelines for the interview process etc. Finally be enthusiastic, confident, articulate, warm, and smile. Never take job rejections personally. Every adversity leads to an equal or greater benefit so be patient, chin up and move on to the next opportunity! VAT DIGITAL. COM London

Guide on how VAT is applied to Insurance services in the UK. Including the VAT rules, VAT Law and rates applicable Introduction In basic terminology, Insurance is the guarantee to compensate an individual or company for a specified loss. To ensure losses are covered, individuals or companies will pay a premium to an insurance company on a monthly or annual basis. Generally, something is insurance for VAT purposes if it’s an activity that requires the provider to be authorised as an insurer under the provisions of the Financial Services and Markets Act 2000 (FSMA). VAT Liability of Insurance The supply of Insurance services to customers in the UK is Exempt from VAT. Supplies of Insurance made to non UK customers is outside the scope of UK VAT. However VAT can be recovered in relation to these supplies under the Specified Supplies Order. Note: there maybe situations where a number of services including insurance are supplied together as a bundle and as such there may be mixed supplies for VAT purposes. Please click on the below HMRC insurance VAT guide for more details on how to determine the correct VAT treatment. Insurance (VAT Notice 701/36) -Contains public sector information licensed under the Open Government Licence v3.0. Insurance and VAT - Guide on how VAT is Applied to Insurance

Platforms used for electronic trading of securities and other functions such as crowd funding can have a different VAT liability depending on the underlying service. Trading Platforms Introduction Trading platforms are systems used by banks, brokers and other financial institutions to facilitate the trading of financial or physical products such as Bonds, Commodities, Shares, Currencies etc. The fees charged for the provision of these platforms can be Exempt from VAT on the basis that the service falls within the Financial Intermediaries Exemption item 5, Group 5, Schedule 9 of the VAT ACT 1994 or Taxable if the service does not meet the conditions stipulated by HMRC to warrant exemption. HMRC's view on dealer systems / trading platforms per VAT Notice 701 /49 is as follows: "If you operate a dealing system that allows a user to insert a bid and offer quotes for securities, another user to insert an acceptance and for the system to match and sell deals, your supply of the dealing system is exempt, but only where you run that system". Matching - Exempt T he key point here is the platform has direct autonomous involvement in the matching of counter-parties and allows: Platform users / members to offer or insert bids for exempt financial products (such as shares and currencies) at specified prices and Platform users / members to accept offers available on the platform (or otherwise insert counter-offers and bids). The service of matching of bids and offers by a platform provider/operator in order to bring about a trade in securities, debt and currencies is Exempt under item 5, Group 5, Schedule 9 VATA 94. Messaging / Market Data Services - Taxable Systems that : Allow users to insert bids offers and others to view and accept on a transparent basis Send messages to verify the trade Have no direct involvement in matching anonymous counter-parties Allow market makers to provide and respond to requests for prices from clients Stream market prices and data RFQ, RFS Provide data and information The above types of services where no matching occurs or the system just streams data to subscribers are Standard Rated. Trading Costs Platform Access / Gateway type services where platform only offers matching services = Exempt Platform Access / Gateway type services where platform offers matching and a range of other services = Standard Rated Platform Membership / Subscription Fees = Standard rated Sale of Platform Technology or Software = Standard Rated Investment Platforms Introduction Investment platform providers supply online-based services that are designed to transact, safeguard and administer financial investments online. Some platforms provide services directly to investors whilst others can only be accessed via an adviser or other intermediary. Platforms offer a single view of the client’s investment portfolio and provide a convenient channel through which investments can be aggregated; i.e. the bulk execution of equity orders when the intent is to buy and sell the same equity for multiple clients. This enables investments to be transacted and administered more efficiently. Activities usually undertaken by investment platforms include: Providing access to a wide variety of retail investment products, including collective investment schemes, personal pension schemes, ISAs and other wrapper products, stocks, shares, gilts and insurance funds Receiving, transmitting and executing orders for transacting in those investments on behalf of clients, The safekeeping and administration of clients’ assets, Acting as nominee (and therefore legal owner) of the securities that are held in trust for the individual investor who remains the beneficial owner For product providers, platforms provide a means of distributing their products. Platform Fees usually charged by investment platform providers for such services are Exempt from VAT under items 5 and 6 of Schedule 9, Group 5 of VATA 1994, being services related to transactions in securities. Note: Other services offered such as Portfolio Management, The provision of Market Data, Research, Information etc will Standard Rated. Crowdfunding Platforms Introduction Crowdfunding is the practice of funding a project or new business venture through a collection of small contributions from a large number of people (the crowd) over the internet. The project owner (entrepreneur) will normally use an online platform which specialises in crowdfunding to market and advertise their project to the general public in the hope of generating interest and raising funds. There are two crowdfunding models namely the Non Financial and Financial Reward Models. The Non-Financial Return Model - Reward and Donation Reward Model - The contributor, in return for providing a monetary contribution to the project or venture will receive goods or services (non-monetary reward). VAT Treatment - Where a contributor receives goods or services that have an intrinsic value (e.g. clothing, tickets, dvd) in exchange for support given, there is a supply for VAT purposes. The VAT treatment will follow the liability of the goods or services provided. Donation (No reward model) - The contributor makes a monetary contribution to the project or venture and expects nothing in return. VAT Treatment - Where a contributor freely makes a contribution where they expect and receive nothing in return, the contribution is treated as a donation and is not liable to VAT. The position is the same where all that the funder receives is something of symbolic value. For example, an acknowledgement such as a mention in a programme or something similar. The Financial Return Model - Investment and Loan Based Crowdfunding Investment Based Model - In exchange for their investment, the contributor receives financial remuneration in the form of equity securities (such as shares) or debt securities (such as bonds or debentures) issued by the business who launched the funding campaign. VAT Treatment - Following the decision of the ECJ in Kreztechnik, the issue of securities by the business to the contributor, will not be a supply for VAT purposes provided the purpose of the issue is to raise finance. Where there is a sale, transfer of or trading in existing shares and this is done in furtherance of a course of business, then this is treated as exempt under item 6 Group 5 schedule 9 VATA 94. Where the contributor has received financial remuneration in the form of shares issued by the business, any dividends paid to the contributor will be outside the scope of VAT. Where the contributor has received financial remuneration in the form of a debt security such as a bond or debenture issued by the business, interest received by the contributor as holder of the security will be exempt under item 2 Group 5 schedule 9 VATA 94. Where a fixed term debt security such as a bond is held to its maturity date the repayment received on redemption will be outside the scope of VAT. Crowdfunding Loan Based Model - Otherwise known as peer to peer lending, the contributor will lend money to a business/entrepreneur they select on the crowdfunding platform in return for interest payments and a repayment of capital over time. VAT Treatment - The contributor is granting credit in the form of a loan and in return will receive interest. The value of the supply is the gross interest or other sum received but not the repayment of the loan itself. The interest received on the money loaned is consideration for an exempt supply of credit. Crowdfunding Platform Services Online crowdfunding platforms provide an opportunity for entrepreneurs to market or pitch their project to the general public. Some platforms are generalists and offer different types of projects and crowdfunding, others focus on specific types of project e.g. technology or focus on one type of crowdfunding e.g. an equity platform. Crowdfunding platforms providers operate different fee structures for their services. Fees can include commission on funds raised, yearly or monthly subscription fees, flat fees, arrangement fees, administration fees and legal costs. Some platforms are purely a landing page that brings entrepreneurs and funders/investors together. Others have a more active role and the platform provider acts as the central counter-party in the funding arrangement between the funder / investor and entrepreneur. VAT Treatment - As there can be fundamental differences in the services provided by many crowdfunding platform providers, the VAT treatment will depend on the individual facts of the crowdfunding arrangement and the precise nature and characteristic of the platforms service. If for example, the platform provider acts in an intermediary capacity between the project owner and the investors/contributors in arranging a financial transaction, the service will also be exempt if it falls within item 5 sch 9 VATA 94. If however the platform provider is simply providing the technology for the project holder to advertise and market their project and is not involved in the funding arrangements between the project owner and the funder, the service will be taxable as it is purely technical in nature. -Contains public sector information licensed under the Open Government Licence v3.0. Trading Platforms and VAT

Read our guide on intercompany recharging and the implications and UK rules around the application of VAT and the inherent VAT risks and potential impact on P&L. Introduction Inter-company recharges are charges between companies within a corporate group to ensure that costs incurred by one entity on behalf of another entity or shared cost such as IT, Tax, Marketing, HR, Property, etc are allocated to the correct entity. The intercompany recharging process is critical from a : Financial Reporting perspective to ensure that costs sit under the correct Legal Entity to determine its profitability accurately. Corporate Tax Reporting perspective to ensure entities are taxed correctly against their reported profits Transfer Pricing perspective to ensure that the correct transfer pricing adjustments are made to reflect arms length pricing between entities as required by HMRC and outlined under OECD guidelines. Transfer pricing: Methodologies: OECD Guidelines: Overview VAT Allocation perspective to ensure VAT directly applicable to an entity is allocated fair and reasonably to ensure the appropriate VAT recovery rate is applied. Also to ensure that VAT incurred on costs by service companies such as hardware, software, marketing, consulting, HR, etc is allocated to to other corporate and VAT group entity members in line with the Groups VAT Partial Exemption Method. Intercompany Recharges & VAT Issues There maybe VAT implications associated with Inter-company recharges depending on the status of the entities recharging and receiving the recharged costs and the countries they are established in. UK to UK Entity Recharges From a UK perspective, local head-office entities and their local and international branches and visa versa are considered to be the same entity so inter-company recharges between them are disregarded for VAT and thus VAT is not added to the recharged costs. On the other hand, recharges between companies established in the UK where they are not branches of head office subsidiaries or members of a VAT group will incur VAT on recharged costs. Non UK to UK Entity Recharges Most recharged costs for shared services such as IT, Consultancy, HR, Finance etc from a non UK entity to another corporate UK entity will attract UK reverse charge VAT, which means the receiving entity will be required to self account for output VAT at 20% payable to HMRC. The receiving entity will be able to recover some or all of this VAT from HMRC on the same VAT return depending on its Partial Exemption Recovery Rate. So if the receiving entity has a VAT recovery rate of 80% then £80 of every £100 VAT payable to HMRC will be recoverable. UK VAT Groups and Recharges Where UK established companies and their branches are within a VAT Group (see VAT Groups page), recharges between the UK members of the VAT group are disregarded for UK VAT and as such VAT does not need to be added to intercompany recharged costs. This is also the case for non UK established branches and head offices that are members of a UK VAT Group by way of being the same taxable person or entity as their UK established branch or head office entity. For example if UK company A Ltd has a branch A Ltd in India which recharges cost to UK company B Ltd which is in a UK VAT Group with UK company A Ltd, then 20% UK reverse charge VAT will not be applicable. The underlying principle behind this is the whole establishment rule where VAT grouping is not restricted to entities that are located in the UK. Note there is UK anti avoidance legislation in place Sec 432(a) of the VAT Act to prevent overseas branches of UK established VAT Grouped entities "buying in" services from overseas suppliers then recharging them to other UK VAT Group members. Where this occurs, 20% reverse charge VAT is applicable. See below link and the VAT Groups page on this site for more information. VGROUPS01300 - General principles of VAT group treatment Intercompany Recharges - What can go wrong for VAT Due to the complex VAT rules around intercompany recharges and the need for VAT specialist oversight, this can present various risks and result in the incorrect application of VAT. There are a number of scenarios below that illustrate when the correct application of VAT can be wrong. Inter-company recharged costs from overseas entities that are not part of a UK VAT group and the receiving business does not budget for the reverse charge VAT applicable can lead to unforeseen VAT costs where the reverse charge VAT is not fully recoverable and thus results in irrecoverable VAT adjustments in the P&L. This can also lead to the under declaration of VAT to Tax Authority if reverse charge VAT is not applied. Accounts Payable teams that are not fully trained on VAT grouping rules and are unsure as to whether reverse charge VAT codes need to be applied or not within the system, can lead to the under declaration of VAT to Tax Authorities. Intercompany recharges from overseas branches to other UK VAT group members where the underlying supplies have been purchased locally by the overseas branch and it is assumed by the UK company receiving the recharged costs that UK reverse charge VAT is not applicable because the supply is inter-group. Under these circumstances, the anti avoidance rules under Sec 43(2)a as mentioned above will kick in and reverse charge VAT will become applicable. A lack of understanding here, will result in the under declaration of VAT and potential HMRC assessments. Under the VAT grouping rules, companies must have a fixed establishment in the UK to be eligible to be part of a UK VAT group. There are various rules and conditions around what constitutes a fixed establishment and where these are not adhered to, HMRC may opt to de-group or remove UK entities from a UK VAT group where it considers they have not met the conditions for having a UK fixed establishment. Where this happens, HMRC can raise assessments for VAT on any inter-company transactions previously disregarded for VAT. This can lead to significant VAT costs suddenly hitting the P&L. See VAT Groups page for more information and the recent HMRC vs Barclays Bank Plc tribunal case on the VAT news page. Where UK entities recharge cost to overseas entities, UK VAT is not applicable but it is highly likely that the receiving entity may be required to self account for reverse charge VAT locally. Failure of the receiving entity to understand local VAT rules can result in unexpected VAT costs to the overall corporate group. For More information on VAT risks and how to mitigate against them, please see our VAT Risk Page . Situations Where VAT on Inter-company Recharges may not be Applicable Paymaster Services - can involve one company paying salaries and other expenses such as National Insurance and pension contributions. They commonly occur between associated companies in 2 situations where: employees are jointly employed by 2 or more companies and one company undertakes to pay salaries and the other expenses which it then recovers from the other joint employers each of a number of associated companies employs its own staff, but one company (the paymaster) pays salaries and other expenses on behalf of the others who then pay their share of the costs to the paymaster Recovery of money paid out by the paymaster in either of these situations is not subject to VAT as it’s a pay out. Joint Employment - Where staff are jointly employed there is no supply for VAT purposes between the joint employers. Staff are jointly employed if their contracts of employment or letters of appointment make it clear that they have more than one employer. The contract must expressly specify who the employers are for example ‘Company A, Company B and Company C’, or ‘Company A and its subsidiaries’. There is no joint employment where for example there is a contract with one employer: which lays down that the employee’s duties include assisting others that the employee will work full-time for another where the job title shows that the employee works for a group of associated companies (for example a group accountant) Open Government Licence v3.0 , Intercompany Recharges & the VAT Implications

Commodities and VAT - Guide on the different types of commodities, the rules and applicable VAT Law and how VAT is applied to the various types of commodities. Introduction The Trading of commodities is a major element of the worlds financial system in that many institutions and investors use such trading as a me ans of speculating to generate wealth or hedge against adverse price movements in other investments they hold. Commodities can be traded by Banks, Commodity Houses, Brokerages etc. Commodities are often traded locally in individual countries or on exchanges in terminal markets located in major Financial Centres in the US, Asia and Europe. In the UK, there are a number Terminal Markets which are governed by the Terminal Markets Order (1973): London Bullion Market Association London Metals Exchange London Platinum and Palladium Market International Petroleum Exchange London The London Cocoa Terminal Market The London Coffee Terminal Market The London Meat Futures Market The London Potato Futures Market The London Soya Bean Meal Futures Market The London Sugar Terminal Market The London Vegetable Oil Terminal Market The London Wool Terminal Market The London Grain Futures Market The Liverpool Barley Futures Market Terminal Markets Order The Terminal Markets Order (TMO) was originally published in 1973 and its aim was to remove the administrative burden of VAT and enhance competitiveness in the UK markets by allowing certain Commodity Derivative transactions between Terminal Market members and non members to be Zero Rated. Note: The Terminal Market Order applies specifically to commodity derivatives (Futures, Options, Spots, Forwards) where the underlying asset is a physical commodity such as Grain, Oil, Investment Gold, Pork bellies, Platinum etc. The Terminal Markets Order (TMO) does not cover Financial Derivatives based on currencies, interest Rates, Shares, Bonds, indices etc. These are covered under the Banking Section. (Click on Banking Button on home page for infomation) Products That Benefit From Zero Rating Futures Contracts Commodity Futures are standardised derivatives contracts offered by and traded on commodity exchanges by Investment banks, Commodity Houses, Brokerages (as Exchange Members) and allow investors to: Speculate on the price movement of an underlying commodity such as (Wheat, Coffee, Oil, Natural Gas, Silver) Hedge against the movement of the price of a commodity. ( Mainly large companies and investors that use the future contact as a hedge against to protect their own financial instruments ) Buying or selling a Futures Contract means that the buyer and seller are obligated to buy and sell an agreed quantity of a commodity at an agreed price and take delivery of and transfer the underlying commodity respectively on the expiry date of the contract. Delivery normally occurs when instruction is given to remove the goods from the warehouse. Commodity Futures contacts can either be cash settled (most) where there is no delivery of the underlying commodity and contracts are closed out prior to expiry via the settlement of cash or non cash settled meaning that the commodity is actually delivered at expiry. So if potatoes were the underlying commodities, they would be transferred to the buyer. Commodity Futures benefit from Zero Rating where: They are traded on one of the Terminal Markets listed above Futures transactions are between members of the terminal markets (even where delivery occurs) Futures Transactions are between a member and a non member of the Terminal Market and there is no delivery of the commodity. An agent or broker (who is a market member) between a member and member or non member Note : Where delivery occurs between a member and non member of a Terminal Market, the VAT liability will be based on the underlying product. So for example if the product was Investment Gold, the transaction would be Exempt rather than Zero Rated when the Gold has been delivered. Note: Futures Contracts can also be agreed and bought off exchange (over the counter) OTC . These contracts will not attract Zero Rating (unless the commodity is delivered and specifically zero rated). Where Futures are bought OTC, the VAT liability follows the liability of the commodity being traded. Forward Contracts Commodity Forward Contracts are similar to futures contracts in that they oblige a buyer or seller to buy or sell a given amount of a commodity at a set price on a specified date. The difference between Forwards and Futures is that the contracts are non standardised and traded OTC and do not attract Zero Rating unless the commodity being traded is zero rated. Similar to Futures traded OTC, the VAT liability will follow the liability of the underlying commodity being traded. Option Contracts Option contracts provide the right to either buy or sell an underlying commodity at an agreed price (strike price) on a given date. There is no obligation to buy or sell the underlying commodity and the holder can simply let the option: Expire Close out the option (buy or sell before expiry) Exercise the option and sell or purchase the underlying commodity Regardless of whether an option holder chooses any of the above options, they will have to pay a premium for the right to buy the option. The grant of an option contract is a Zero Rated supply if they are traded on any of the above earlier mentioned Terminal Markets irrespective of whether the transaction is between two market members or a market member and a non market member. The option contract will also remain Zero Rated if it is exercised. However if the option is exercised there will be an additional supply of the underlying commodity. Actuals Contracts Actuals are contracts where the parties agree to the delivery of a commodity for a specific amount and price on a specific date. This can be in the future (futures) or on the spot (Spots) These contracts are Zero Rated where they are traded by two market members on a Terminal Market as listed above. Investment Gold Investment Gold is either: Gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets A gold coin minted after 1800 that is: (a) of a purity of not less than 900 thousandths (b) or has been, legal tender in its country of origin (c) of a description of coin that is normally sold at a price that does not exceed 180 per cent of the open market value of the gold contained in the coin An investment gold coin as specified in Investment gold coins (VAT Notice 701/21A) . Supplies of Investment Gold between two taxable persons who are members of the London Bullion Market Association (LBMA) are Zero Rated . This includes: Futures Contracts Option Contracts Investment Gold that is not traded between members of the LBMA is covered under the VAT Exemption and the supply of Investment Gold here is exempt including for Financial Derivatives (Futures, Forwards, Swaps) excluding options. Note: Suppliers of Investment Gold can also apply to Opt to Tax and thus charge 20% Standard Rated VAT on their supply which allows them to recover VAT on their purchases. See HMRC VAT Notice 701/21: gold Voluntary Carbon Credits From 1 September 2024 VAT needs to be accounted for on certain trades of voluntary carbon credits at the standard rate. The following activities are still outside the scope of VAT: the first issue of a voluntary carbon credit by a public authority the holding of voluntary carbon credits as an investment, where there is no economic activity donations made to voluntary carbon credit projects sales of voluntary carbon credits from self-assessed projects with no independent or third-party verification Voluntary carbon credits in the scope of the Terminal Markets Order The Terminal Markets Order provides a VAT zero rate for wholesale commodity transactions made by members on specified terminal markets. From 1 September 2024, HMRC will allow the VAT relief granted under the Terminal Markets Order to apply to contracts in taxable voluntary carbon credits traded on terminal markets, within the terms of the relief. Electricity and Gas Trading Banks involved in Investment or Wholesale banking often trade in Natural Gas and Electricity via trading contracts for the purchase and supply (delivery) of wholesale gas and electricity. Such supplies are normally subject to the Domestic Reverse Charge Procedure. What this means is that the supply of Gas and Electricity will effectively be Zero Rated for the bank supplying as the liability for accounting for the Output VAT will be passed on to the customer. Only the net sales amounts will appear on their VAT return in Box 6. The opposite will be the case where the bank purchases Gas or Electricity and has to self account for VAT under the reverse charge mechanism thus effectively paying 20% VAT to HMRC and at the same time recovering 20% VAT from HMRC meaning a nil payment in Box 5 to HMRC. Note: This should not be confused with the supply of gas to businesses plus 20% VAT and the supply of domestic Gas and Electricity which is charged at the reduced rate 5% by energy companies. Emission Allowances UKETS (Replaces EU scheme) Emissions trading schemes usually work on the ‘cap and trade’ principle, where a cap is set on the total amount of certain greenhouse gases that can be emitted by sectors covered by the scheme. This limits the total amount of carbon that can be emitted and, as it decreases over time, will make a significant contribution to how we meet our Net Zero 2050 target and other legally binding carbon reduction commitments. Within this cap, participants receive free allowances and/or buy emission allowances at auction or on the secondary market which they can trade with other participants as needed. From the 1 May 2021 domestic Reverse charge VAT applies to the trading of UKETS - Emission Trading Certificates similar to Electricity and Gas Trading above. Oil Trading The supply of oil for non domestic purposes is Standard Rated including Crude oil, Kerosene, Road Fuel, White Diesel among others. Oil traded as commodity futures are covered above under futures. Fiscal Warehousing A fiscal warehouse is a regime where certain commodities in free circulation within Great Britain or between Northern Ireland and the EU can be traded VAT-free , subject to the certain conditions. Goods are in free circulation if they’re produced in the EU or, in the case of imported goods, all duties, taxes and levies due at importation have been paid. How Fiscal warehousing works Fiscal warehousing is a regime under which certain specified commodities may be placed in a notified warehouse and traded by businesses. VAT on the supplies of commodities both entering a fiscal warehouse and made whilst within the warehouse is relieved and accounted for when the commodities are removed from the regime. Goods must be in free circulation for this to happen. Eligible Commodities There are many types of commodities that can be placed in a fiscal warehouse and are eligible to be traded and transferred between fiscal warehouses in Great Britain or between Northern Ireland and the EU. Some of these are listed below (list is not exhaustive): Copper Zinc Nickel Aluminum Lead Oil Cerials Platinum Palladium Coffee (unroasted) Potatoes Eligibility Criteria The eligibility criteria is: Commodity in question should be commonly traded in large quantities on a recognised international market All commodities entered into the fiscal warehouse must be in free circulation Trading within and Removal of Goods from the Warehouse Supplies of goods which are in a fiscal warehouse are outside the scope of UK VAT. There is no requirement to account for VAT to HMRC on such transactions, nor is there any direct customs control over movements or transfers of goods whilst within the fiscal warehouse regime. When goods are removed from the regime the amount of VAT payable will correspond to either the amount which would have been due on the: Transaction that caused the goods to be entered into the warehouse Value of the last supply if they have been sold within the warehouse VAT becomes due when commodities finally leave the fiscal warehousing regime. The amount of VAT due corresponds to the amount of tax which would otherwise have been due on the final supply of goods in the warehouse, plus the amount of tax which would have been applied to any of the relieved supplies of services relating to those goods affected after that final supply. The person liable to pay the VAT on removal is the person who causes the goods to cease to be covered by the regime, if you are: VAT registered, you should account for the VAT on your VAT Return covering the period of the removal Not registered, you must complete form VAT150 Advice of removals from fiscal warehouse by persons unregistered for VAT and present it to the local EPU even when no VAT is due on removal Payment of any VAT due on removal must be made in cash or by cheque. For all removals, proof of ownership and either a stamped copy of form VAT150 or a VAT registration number is required by the warehouse keeper before the goods can be released Where goods are acquired into Northern Ireland from an EU member state and subsequently removed from warehouse without being sold within the warehouse, acquisition VAT must be accounted for in the normal way as explained in VAT Notice 725: VAT on movements of goods between Northern Ireland and the EU . When is VAT not due on Removal of Goods If you remove your goods from a fiscal warehouse in any of the following situations, VAT is not due on the removal of the goods. Removal of zero-rated goods that have not been subject to relieved supplies of services whilst warehoused Removal of your own goods (that either you produced or purchased VAT paid) which you entered to the fiscal warehouse and that have not been sold, nor have they been subject to relieved supplies of services whilst warehoused Exports where goods are exported from Great Britain outside the UK or from Northern Ireland to Great Britain and outside the EU, standard export procedures apply. Such removals must be supported by normal evidence of export. Any associated relieved supplies of services do not become taxable where goods have been exported. Dispatches to EU member states from Northern Ireland where goods are removed in the course of an intra-EU supply, normal Intrastat and intra-EU supply or acquisition rules apply for VAT-registered traders. Relieved services are not taxed on removal to an EU member state but should be reflected in the value of the supply. Temporary removals - authorisations (either general or specific) must be obtained through the approving office. Goods must be returned to the original site or another covered by the authorisation. In order to obtain authorisation, the remover must state the length of time the goods will need to be removed for and for what purpose the removal is required. Such removals must be notified to the warehouse keeper who’s responsible for ensuring that any temporary removals meet the prescribed conditions. VAT-free sampling small quantities of commodities of a negligible commercial value can be removed for this purpose under a simplified removal scheme. The amount and approximate value of the commodity to be removed must be detailed in the authorisation given by the VAT helpline. Such removals must be notified to the warehouse keeper, who’s responsible for ensuring that they meet the prescribed conditions. VAT Treatment for Services in a Fiscal Warehouse Services which may be zero-rated are supplies of allowable physical services within the fiscal warehouse which would otherwise be taxable at the standard rate, for example storage charges. Services which may not be zero-rated are brokerage, agents fees and transport between warehouses. On removal of the goods from the warehouse, any VAT relieved on each supply of services relating to those commodities made after the last sale in warehouse of such commodities must be accounted for, together with the VAT due on the relieved supply of the commodities. For example the commodity may be divided up into smaller packages by a simple operation that does not change its nature. The value of the service that is performed whilst the commodity is still relieved from VAT in the warehouse, must be added to the value of the supply when it is finally sold and removed from the warehouse. For example: Value of re-packaging service £50 Value of final supply of commodity on removal from warehouse £100 Value of total final supply £150 VAT due on total final supply £150 × 20% = £30 Where, as a result of an operation carried out on eligible commodities, the resulting commodities are no longer eligible for fiscal warehousing, they’re treated as having been removed and VAT will become due. VAT R egistration If your only business activity is the supply of goods within a fiscal warehousing regime you have no liability to register for VAT, but you may do so voluntarily if you wish under VAT Act 1994 Schedule 1(10). Your liability to register for other business activities is not affected by either the value of supplies made in a fiscal warehouse or the value of deemed supplies of relieved services accounted for by the remover of the goods. Commodities and VAT - Guide on how VAT is Applied

VAT Careers can be interesting and rewarding as it is a very specialised and Niche area. Discover the Pros and Cons of working in VAT and the different areas. Introduction Value Added Tax (VAT) is a consumption tax that is applied to a wide range of goods and services. There are a wide range of rules and regulations both of a legal and compliance nature that organisations both large and small have to adhere to. As such organisations whether large or small will require human capital to apply and comply with VAT legislation and file VAT returns to HMRC on a timely basis. Working in Practice Accountancy practices come in different shapes and sizes and range from: The small self employed owner managed Practices that provide book keeping services (VAT, Payroll, Annual Accounts, Self Assessment, CIS) to small businesses Franchised Practices such as Tax Assist or CerTax Practices with 2-10 Partners that typically provide a range of accounting, Audit and Taxation services to small and medium sized businesses Larger medium sized with 10 or more partners providing Taxation, Audit, Accounting and advisory services to medium sized entities Big 4 Accountancy Firms (Deloitte, EY, KPMG, PWC that provide services to large Private Companies, Public companies such as banks, Private Equity Houses etc and services can range from Consultancy, Technology, Audit, Taxation, Accounting and more. Typically working in practice involves providing services as listed above to external businesses for fees. Therefore normally an individual will commence their career as a junior (Graduate, School or college leaver) learning the ropes from more senior staff until eventually they receive an allocation of clients to manage. As their knowledge, experience and skills improve, juniors can typically move up the hierarchy to Manager, Senior Manager, Director, Associate Partner, Partner or their equivalent. As the fees billed are per hours worked, most accountants, tax specialists, technology specialist, Partners etc that work in Practice will be required to maintain and record their hours on time sheets to support the charging out (billing) to clients. Working in Industry Working in industry is basically the other side of the coin where Accountants and Tax Advisors will look after the internal VAT compliance, VAT Accounting and VAT legal Advisory aspects of the businesses. Basically VAT roles are usually split between VAT Compliance and VAT Advisory or a combination of both. Also roles can be focused on different internal segments or divisions within an organisation. For Example in a transport company you may have the Train Division and Bus Division or in Banking you may have an Investment Banking and Retail Banking division and as such the VAT rules and their application can be different depending on which area is being covered. Typically VAT Specialists will spend time working on the following: Preparing and or reviewing internal company VAT and other related returns for submission to HMRC M anaging VAT Risk and embedding controls Ensuring Accounts Payable processes are VAT compliant Ensuring the Process for Bad Debt Relief Recovery is sound Feeding in to Senior Accounting Officer risk meetings VAT Accounting and VAT Recovery Forecasting Managing VAT P roj ec ts Maintaining and building VAT Systems Advising M anagement on VAT, Advising client facing departments on billing VAT Advising Finance with VAT reporting Providing advice on Mergers and Acquisitions (M&A) Advising on Intervention Reviewing Contracts Advising on Sourcing and Procurement to ensure VAT efficiency Advising on Establishment & Fixed Establishment Advising on Securitisation Advising on Loan Syndication Registering and de-registering companies from VAT Creating VAT Groups Advising on Business Disposals (TOGC) Advising on international aspects of VAT Working in industry can mean working for Banks, Food Companies, Retailers, Oil Companies, Car Manufacturers, Airport Operators, Train Companies, Energy providers and basically any corporate entity that's not Practice as described above. As you can imagine from the duties and tasks typically performed above, VAT is a specialist area and requires a sound understanding and knowledge of UK VAT Law, EU VAT Law, Case Law, International VAT, compliance along with solid practical experience applying this to real life day to day transactions. The more knowledge you have and experience you gain in these areas, the more illuminated you will become in the VAT world which is actually a small specialist community. Qualifications Required The following professional qualifications are usually requested for roles within VAT. ( However the list is not exhaustive) Chartered Institute of Taxation (CTA) Association of Taxation Technicians (ATT) Associate Chartered Accountant (ACA) Institute of Chartered Accountants Association of Chartered Certified Accountants (ACCA) Association of Accounting Technicians (AAT) That said, it does not mean if you do not have one of these qualifications that you can't pursue a career in VAT. Many VAT specialist gain their experience working for HMRC before moving into Practice or Industry. List of Key Skills and Knowledge Required Regardless of Individual Professional Level Thorough understanding of UK VAT Law (VAT Act) and how it is applied to every day business transactions Sound understanding of the VAT liability of various products and services. Applicable rates of VAT Good understanding of European VAT principles VAT and its impact on M&A Transactions VAT on Sourcing and Procurement Professionalism and Ethics Good IT skills. For example experience in using Excel, WORD, Power point, SAP, Sage, Zero, Alteryx etc. Excellent Communication Skills Ability to work under pressure Being Analytical and having an eye for detail Must be collaborative Understand the importance of risk mitigation Have a continuous improvement mindset Emotionally Intelligent Understand the importance of diversity and its impact on business Good commercial awareness Ability to build and maintain key relationships Good understanding of VAT accounting and its impact on P&L Understanding of VAT Groups and Establishment Principles Understanding of how billing systems work and applied VAT coding Good knowledge of and application of reverse charge VAT and its Impact on costs and P&L Knowledge of the Error Correction Notice and Protective Claim procedure. Partial Exemption Special Methods Property and Option To Tax Construction Industry Scheme (CIS) Trainee / Analyst / Graduate - Entry Level At this level, the roles in VAT will normally be about learning and providing support to Managers / Assistant Vice Presidents and Senior Managers / Vice presidents. You will be expected to rapidly grasp the basic fundamentals of VAT while studying for one of the qualifications listed above. Some of the typical duties will include: Preparing or assisting in the preparation of VAT and other returns before further stage reviews Assisting with VAT administration, chasing responses and documenting various aspects relating to projects Investigating issues and problems and reporting on these to senior colleagues Preparing procedure notes to document processes Preparing VAT journals for review and posting Helping out with the Annual Adjustment Capital Good Scheme analysis Assisting in providing advisory support to internal business areas Manager / Assistant Vice President At the Assistant Vice President level, you are more likely to be doing a lot of the heavy lifting. Some of the typical duties will include: Preparing and or reviewing VAT returns Providing advice to clients or internal stakeholders Preparing annual adjustments Assisting Senior Managers, Vice presidents and Directors on projects Building and maintaining good relations with Finance and IT Assisting accounts payable and receivable in relation to VAT coding Capital Good Scheme preparation Option to Tax Advising on reverse charges and its application Ensuring VAT is being correctly coded or booked in systems Oversight of VAT Accounting Senior Manager / Vice President The Senior Manager / Vice president / Associate Director level brings with it significantly more ownership of processes and overall responsibility of particular business areas to ensure the accuracy of VAT and other Returns and the mitigation of risk. Also will be the first point of call for client and internal advisory support. Some of the typical duties will include: Reviewing VAT and other returns to ensure their accuracy Reviewing Annual Adjustments Annual review of Partial Exemption Special Method (PESM) Ensuring that control failures are documented, fixed and monitored Reviewing and signing off of VAT accounts Assisting accounts payable and receivable in relation to VAT coding Capital Good Scheme preparation or review Advising clients on M&A, Intervention, securitisation, Invoicing, Financing etc. PESM modelling / redraft Keeping up to date with legislation and preparing impact assessments Inter-company transactions and VAT impact Managing projects Managing junior staff Mentoring, Training and coaching Junior staff Making Tax Digital implementation and review Thorough understanding of systems Preparing reports for senior management Liaising with HMRC to resolve queries Managing internal and external audits Managing VAT reporting Director Directors typically have large VAT teams to manage on either the compliance or advisory side or can be the overall Head of VAT. At this level, most of the time will be spent overseeing the team and ensuring it is working towards the stated annual objectives. Some of the typical duties will include: Setting the VAT objectives for the organisation Reporting to the CFO or Head of Tax and keeping them updated with events Advising on VAT aspects of M&A and Intervention Advising on Global E Invoicing Implementation Requirements Advising on the set up of new branches and establishments Planning and overseeing internal / HMRC Partial Exemption Special Method Reviews Holding regular meetings with HMRC to update them on business changes, new product areas etc. Overall review and sign-off of VAT and other returns Mentoring, Training and coaching the team Having regular catch-ups with key clients Having regular catch ups with external consultants and attending industry events Overall responsibility for risk and controls and ensuring they are operating correctly Liaising with internal and external auditors to plan and coordinate timings and understand scope of audits etc. Overall responsibility for ensuring new products and services have been reviewed for VAT, documented and signed off. Overall responsibility for ensuring the digitalisation of VAT. Keeping up to date with Legislation and ensuring that changes are filtered down and implemented. Ensuring that VAT is being budgeted for on costs and all significant VAT risks are reflected in the P&L Chairing regular Team meetings Ensuring that clients are engaged and happy and dealing with any complaints promptly and robustly Ensuring that a strong risk culture is embedded in the team Dealing with staff recruitment Arranging regular training for the Team VAT Careers - Key Aspects of Pursuing a Career in VAT

Global VAT Guides. Information and guides on how VAT and GST is applied in different countries. Including VAT and GST rates, VAT rules, the VAT and GST liability of goods and services, imports and exports, plus links to local Tax Authority websites and much more. GLOBAL VAT - Country VAT Guides - How VAT Applies VATDIGITAL.COM - Explore our Global VAT Guides for information and updates on VAT and GST rules and how they are applied to locally and international transactions including to non domiciled entities. Australian - GST Austria - VAT Canada - GST / HST China - VAT Denmark - VAT Germany - VAT EU - VAT French - VAT Estonia - VAT Ireland VAT Italy - VAT Japanese Consumption Tax Show More Argentina - VAT Chile - VAT Jersey - VAT Show More VAT For Businesses - EU Explore Luxembourg - VAT Nigeria - VAT Ghana - VAT South Africa - VAT Netherlands - VAT Norway - VAT Portugal - VAT Singapore - GST Spain - VAT Israel VAT Saudi Arabia - VAT Switzerland - VAT Show More Poland VAT India - VAT Kenya VAT Show More Ecommerce - Online Traders - EU One Stop Shop Explore

The sale of a business can trigger a VAT liability or can be treated as a Transfer of a Business as a Going Concern (TOGC) (zero VAT) provided HMRC conditions are met. Introduction The sale of assets of a business by a business that is VAT registered would normally attract 20% VAT. However under HMRC rules, if you sell assets of a business as a going concern, then provided certain conditions are met, no VAT is applicable on the sale. This is known as Transferring a Business as a Going Concern (TOGC) and the following conditions must be met before the transfer can be treated as a TOGC. The assets, such as stock-in-trade, machinery, goodwill, premises, and fixtures and fittings, must be sold as part of the TOGC. The buyer must intend to use the assets in carrying on the same kind of business as the seller - this does not need to be identical to that of the seller, but the buyer must be in possession of a business rather than simply a set of assets Where the seller is a taxable person, the buyer must be a taxable person already or become one as the result of the transfer In respect of land or buildings which would be standard-rated if it were supplied, the buyer must notify HMRC that they have opted to tax the land by the relevant date, and must notify the seller that their option has not been disapplied by the same date Where only part of the business is sold it must be capable of operating separately There must not be a series of immediately consecutive transfers of the business Activities that are not consid ered a TOGC The buyer does not: (1) continue the business and absorbs the assets itself (2) intend to use the assets to continue the same kind of business as the seller The buyer is not registered for VAT or required to register as a result of the transfer There is no supply made, which could include situations such as changes in the constitution of a partnership There has been no transfer of assets so there is nothing to which the TOGC provisions can apply instances where a limited company is passed from one person to another via the transfer of shares, but the assets still belong to the limited company - there is no change in the ownership of the assets so no supplies to which the TOGC provisions could apply Where a VAT-registered farmer transfers his business as a going concern to a farmer who is certified under the Agricultural Flat Rate Scheme there can be no TOGC for VAT as the buyer is not registered or registerable for VAT Note : The sale of shares in a company is exempt from VAT as it falls under the Financial Services Exemption. Any VAT incurred on associated selling costs such as Legal, Accountancy, Consultancy etc, may be irrecoverable as a result. Note : The TOGC rules are compulsory. You cannot choose to ‘opt out’. So, it’s very important that you establish from the outset whether the business is being sold as a TOGC. Incorrect treatment could result in corrective action by HMRC which may attract a penalty and interest. For more specific details of how to treat the transfer of assets and or a business as a TOGC, please refer to HMRC's Notice on this subject in the link below. Transfer a business as a going concern (VAT Notice 700/9) -Contains public sector information licensed under the Open Government Licence v3.0. Selling a Business and VAT

Read our comprehensive guide on the VAT liability of supplying staff or labour as a service to either external counterparties or within a VAT group. Introduction The supply of staff occurs when a company provides its employees or directors to another organisation for consideration and the receiving company directs and exercises day to day control over the employee or director while working in their organisation. The key point is that the recipient company does not employ the staff provided but is responsible for their day to day direction in carrying out whatever work is required. The VAT liability for the supply of staff is as follows: Supply of staff from a UK business to a UK business = Standard Rated 20% Supply of staff from a UK business to a non UK business = Outside the scope of VAT. (Zero Rated) Supply of staff from a non UK Business to a business located in the UK( incl Isle of Man) = Reverse Charge VAT applicable at 20% Consideration for a supply = Value of what you are given in return for providing the required services and VAT must be accounted for on the full amount. Consideration will include the following (received from the recipient company and or paid to the staff member by the recipient company) and VAT should be applied to the sum total of these: Fees for staff provision Salary National Insurance Bonuses Pension contributions Paymaster Servic es Paymaster services occurs where there a number of associated companies that employ their own staff but one company has the role of paying the salaries and expenses to all the employees of each company. The recovery of the salaries and expenses by the paymaster company from the other companies is not a supply of staff and is outside the scope of VAT. Where the paymaster charges the other associated companies a fee for acting as paymaster, then this fee is subject to VAT. Supply of Directors The Supply of Directors occurs in the following circumstances and 20% VAT is applicable on any fees charged: Company A supplies a Director or Employee to serve as a Director at Company B for a Fee Company A provides a Director or Employee to serve at a number of associated Companies B, C, D and E. Accountancy Firm A supplies one of its Directors to serve as an accountant at Company B Company A invests and takes a majority stake in company B and appoints one of its Directors to the board to provide day to day specialism in running the target company for a fee Staff Employment Agencies Employment agencies can act as either principal or agent when they are involved is the provision of staff. A company that employs workers under its own contract of services and pays their salary then provides them to another company as a supply of staff = 20% VAT applicable on total charge collected from recipient company. Staff umbrella companies operate in this way. A company that acts a an agent to another company by only finding and introducing staff to that company then this is not a supply of staff but rather an introductory service = 20% VAT applicable on agency fee -Contains public sector information licensed under the Open Government Licence v3.0. Supply of Staff and VAT

VAT Guide for the Netherlands including VAT rates, VAT registrtaion, imports and exports and much more. Introduction There are 3 different rates of VAT in the Netherlands: 0% Zero Rate = Exports of Goods or Services 9% Reduced Rate = Food & Drink, Newspapers, Magazines, Agricultural Products and Services, medicines 21% Standard Rate = Applies to goods and services that do not fall under above or are not exempt. Click on the button below for more information about VAT in the Netherlands. How VAT Works in the Netherlands netherlands - Vat