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Read our Guid on GST in Jersey, Including GST rates, Exemptions, goods and services that are zero rated, the requirements around GST registration and much more. Jersey-GST Goods and Services Tax (GST) The Standard Rate 5% on most goods and services in Jersey. Zero-rated goods and services GST is rated at 0% for: buying, selling or renting accommodation exports the supply of international services where the benefit is received in a country outside Jersey GST exempt goods and services The goods and services specifically exempted from GST under the law are: financial services insurance postal services medical supplies medicines on prescription supplies by charities registered child care some burial and cremation services school fees GST Other Tips - If a business adds a service charge to your bill, then it is subject to GST. If you leave a tip, it isn't. Prescriptions - No GST is charged on prescriptions if you are entitled to claim pharmaceutical benefit under the Health Insurance (Jersey) Law 1967. House sales, rent and housebuilding - You don't pay GST on house sales, transfers or leases. Loans or mortgages Loans and mortgages are exempt from GST. Hire purchase, conditional sales or credit sales are also exempt. Businesses that charge GST It should only be charged by a business which is registered for GST with Revenue Jersey. Jersey businesses with a turnover in excess of £300,000 in any 12 month period are required to register for GST and charge it to their customers, although some smaller businesses voluntarily register. Any overseas retailer, or online market, who sells goods to non-business consumers in Jersey and those goods are despatched from an overseas location to Jersey, must register and account for GST if their turnover from such sales exceeds, or is likely to exceed, £300,000 per annum. Smaller overseas retailers may also voluntarily register. For more specific information regarding Jersey VAT, please visit the Jersey Tax Authority website Goods and Services Tax (GST). Source - gov.je

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

The UK Capital Goods Scheme is a UK HMRC mechanism that impacts the amount of VAT you maybe able to recover on high value assets such as buildings. Find out more. Introduction The Capital Goods Scheme ensures that where businesses acquire or create assets and recover the input VAT from HMRC on the initial purchase upfront, any subsequent change in the entities Taxable sales compared to its total sales (partial exemption recovery rate) is reflected in adjustments to the input VAT initially recovered. If for example you purchase a computer for £250,000 and recover the VAT in full as your business is only making taxable sales, then the following year your business makes 50% exempt and 50% taxable sales then you will only be able to recover 50% of the VAT as the computer is not being used exclusively to make taxable sales. So in effect the VAT recoverable on the asset can increase or decrease over the adjustment period depending on the extent of the use of the asset to make taxable sales. Assets Covered by the Scheme You’ll have to use the Capital Goods Scheme if you spend £250,000 (excluding VAT) or more on: buying land, a building or part of a building or civil engineering work constructing a building or civil engineering work refurbishing, fitting out, altering or extending a building or civil engineering work Civil engineering work includes things like roads, bridges, golf courses, running tracks and the installation of pipes for connecting to mains services. Computers and computer equipment The scheme only applies to individual computers, or items of computer equipment, that cost £50,000 (excluding VAT) or more. It doesn’t cover something like a network where the total cost of the server and all the computers and printers is £50,000 or more but each individual item is less than £50,000. Nor does it cover computerised equipment (for example, a computerised telephone exchange or computer-controlled blast furnace) or computer software. Aircraft, ships, boats and other vessels The scheme applies if you spend £50,000 or more (excluding VAT) on purchasing, constructing, refurbishing, fitting out, altering or extending an aircraft, ship, boat or other vessel. The adjustment periods These are: 5 intervals for computers 5 intervals for ships and aircraft 10 intervals for all other capital items Record Keeping You’re not required to keep VAT records for longer than 6 years. But the CGS requires you to make adjustments up to 10 years later. You should keep records long enough to show us how you calculated each adjustment. Values and definitions What does HMRC mean by ‘capital expenditure This is normally expenditure capitalised for accounting purposes. We’ll not normally challenge your capitalisation policy for the purposes of the CGS, except in cases of avoidance or abuse. In some cases charities may incur expenditure of a capital nature on land and property which is not capitalised in their accounts (for example certain heritage buildings or churches). This is generally because the charity does not have unfettered freedom to exploit or dispose of the land or property concerned. This will not prevent expenditure that’s essentially capital in nature from being adjusted under the CGS. The value of a capital item This is the VAT exclusive value of the item. Only the value of standard or reduced-rated taxable supplies is considered. Before 1 January 2011, the value of a capital item was determined by reference to the business-related expenditure. With effect from 1 January 2011, the value is determined by reference to total expenditure on an asset. This includes both business and non-business expenditure on an asset. Example A business purchases a building for £1 million and incurs £200,000 VAT. The building is to be used for 60% business purposes and 40% non-business purposes (for example, charitable use). Before 1 January 2011, £600,000 (60% of £1 million) determined the value for CGS purposes. Under the new rules that took effect from 1 January 2011, all of the expenditure on the building (£1 million) is the value for CGS purposes. As the CGS threshold for buildings remains at £250,000, the building is a capital item in both scenarios. Expenditure incurred on a capital item before and after 1 January 2011 It will be necessary to determine the amount of business-related expenditure incurred on the asset up to 31 December 2010 and the total amount of expenditure (business and non-business) incurred on or after 1 January 2011. If the sum of these amounts exceeds the relevant CGS threshold, the asset falls within the CGS. The adjustable amount of VAT Prior to 1 January 2011, only VAT on the business-related expenditure on an asset (input tax) fell within the CGS. With effect from 1 January 2011, all of the VAT on an asset (in this instance input tax and non-business VAT) falls within the CGS. Example Following on from the example , prior to 1 January 2011, input tax of £105,000 (17.5% of £600,000) fell within the CGS. With effect from 1 January 2011, VAT of £175,000 (17.5% of £1 million) falls within the CGS (£200,000 after the increase in the standard rate of VAT to 20% on 4 January 2011). If expenditure is incurred both before and after 1 January 2011, the VAT on the business-related expenditure incurred up to 31 December 2010 and the total VAT incurred on the asset on or after 1 January 2011 fall within the CGS. Estimate the value If you do not know if a project exceeds the value threshold for the CGS until all invoices have been received you’ll need to estimate the value of the supplies you’ve received. This may happen with construction projects and refurbishments where VAT is incurred over a period of time and also with contracts that include a retention clause. A retention clause involves a proportion of the contract price being held back and only paid when the work has been satisfactorily completed. If, when you start the CGS, you estimate that the value of relevant supplies will exceed the value threshold, the item will become a capital item. Even if you find later on that the value does not reach the threshold, the item remains in the scheme and you should continue to make adjustments as necessary. If you do estimate the value of a capital item you’ll need to keep all the documents you based your estimation on, such as a contract, as our officer may ask to see it. What you should include in the value of land or buildings that you acquire Only include the value of the interest in the land or building supplied to you, if the supply was taxable and not zero-rated. Do not include any associated costs such as legal or estate agency fees. In calculating the value of the interest supplied to you in the land or building, you do not need to include the value of any rent or service charges unless it’s: been paid or is payable more than 12 months in advance invoiced by the supplier for a period of more than 12 months – in that case, you should include the value of rent or service charges when calculating the value of the capital item What you should include in the value of a constructed building or civil engineering work You should include the total VAT exclusive cost of any of the following supplies made to you: the interest in the land, if the supply to you was taxable (other than zero-rated) taxable (other than zero-rated) goods and services supplied for, or in connection with, the construction of the building or civil engineering work You should include all the costs involved in making the building ready, such as: professional and managerial services including architects, surveyors and site management demolition and site clearance building and civil engineering contractors’ services materials used in the construction security equipment hire haulage landscaping fitting out, including the value of any fixtures 4.8 If you’ve purchased land and constructed a building on it If you’ve purchased land and constructed a building on it, this is treated as one capital item. What to include in the value of an alteration, extension or annex where the value of the Goods and services received is £250,000 or more You should include the total value of all taxable (other than zero-rated) goods or services supplied to you for, or in connection with, the alteration, extension or annex. You should include all the costs involved in making the building or civil engineering work ready. See examples at paragraph 4.7 . What you should include in the value if a capital item is refurbished or fitted out You should only include the value of capital expenditure on the taxable (other than zero-rated) supply of services and of goods affixed to the building or civil engineering work supplied to you for or in connection with the refurbishment or fit out. However, for capital items where the costs are incurred on or after 1 January 2011 there is no longer a requirement for goods used for the refurbishment to be affixed to the building. You should include all the costs involved in making the refurbished or fitted out building ready. See examples at paragraph 4.7 . Goods affix ed’ to the building These are goods which become part of the fabric of the building. Generally these are items that are sold with the property and are not portable or easily removed. ‘Goods affixed’ does not include items secured for safety or security reasons or computers or computer equipment. These may be subject to the CGS in their own right. The following lists will help you to decide if an item is ‘affixed’. This list is not exhaustive and the deciding factor is usually if the item becomes part of the fabric of the building. Common inclusions are: materials to build internal and external walls roofs and ceilings floors and hard flooring permanent partitioning windows lifts ‘built in’ storage such as cupboards or shelving air conditioning lighting decorative features Common exclusions are: office furniture storage unless it’s ‘built in’ carpets computers and computer equipment factory and office machinery Again, this list is not exhaustive. For capital items where the capital costs are incurred on or after 1 January 2011 there is no longer a requirement for goods used for a refurbishment to be affixed to a building. For capital items where the capital costs were incurred before 1 January 2011, this treatment is already allowed in relation to the ‘goods affixed’ condition by concession and is adopted by most businesses. If the refurbishment is in phases If you do this you’ll need to decide if the work should be treated as a whole for CGS purposes or if there’s more than one refurbishment. If you think that each phase is really a separate refurbishment then they should be treated separately for CGS purposes. Normally there’s more than one refurbishment when either: there are separate contracts for each phase of the work a contract where each phase is a separate option which can be selected, and each phase of work is completed before work on the next phase starts A refurbishment which is only undertaken in phases because the building is occupied and where the contractors work on 1 floor at a time is normally considered to be only one refurbishment. Regular refurbishments These are sometimes referred to as ‘rolling refurbishments’. Problems may occur if successive refurbishments begin before each adjustment period has expired. If this happens you should either: treat the original refurbishment as ‘destroyed’ (see paragraph 9.8 ) if there is nothing left of the earlier refurbishment or this earlier work is stripped out or replaced – the effect of this is that no further adjustments would be required to the input tax on the previous refurbishment continue to make adjustments for the remainder of the adjustment period if elements of the earlier refurbishment are retained What to include in the value of computers You should include any delivery and installation costs, unless these are supplied separately. If you import a computer you should use the value for VAT at importation. This will include any import duty payable. 2025 - Tax Spring Statement - UK Gov - Capital Goods Scheme Simplification In its's April 2025 Spring Statement, the government announced that it will simplify the Capital Goods Scheme by introducing the removal of computers from the assets covered by the scheme and increasing the capital expenditure value of land, buildings and civil engineering work to £600,000 (exclusive of VAT) For more information on the Capital Good Scheme please see VAT Notice Capital Goods Scheme (VAT Notice 706/2) Capital Goods Scheme

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

Making Tax Digital is a UK Govenment initiative to digitalise tax reporting and filing. In the UK it is mandatory and requires VAT registered businesses to file their VAT returns digitally using third party software. Introduction Ma king Tax Digital is a UK Government initiative to become the most Digitalised Tax Administrator in the world by introducing legislation which requires all VAT registered businesses to sign up to HMRC's M aking Tax Digital and record and maintain records digitally. (Note as of 1 April 2022 all VAT registered businesses must use MTD compatible software or spreadsheets to record VAT related transactions and submit VAT returns to HMRC via Application Program Interface (API). Prior to 1st April 2022, the rules only applied to VAT registered business that were above the £85,000 VAT registration threshold. The aim here is to make the administration of tax (VAT) more efficient and accurate and eliminate manual intervention as far as possible. To achieve this, businesses will either have to obtain accounting software from a software vendor or use a spreadsheet (such as Excel) to record transactions. Note: If you choose to use spreadsheets to maintain records digitally then you will need to obtain compatible bridging software to be able to link and file the VAT figures you wish to report in your spreadsheet records to HMRC. Search for record keeping software and bridging software . Once you have compatible software or bridging software, you can then register with HMRC for Making Tax Digital or ask your agent to do you on you're behalf. Exempt from Making Tax Digital HMRC will allow individuals to be exempt from submitting returns under MTD and using compatible software or bridging software for the following reasons: Disability - prevents an individual from using compatible MTD software Location - You business is located in an area that does not have great internet access Age Business is subject to Insolvency proceedings Religion Note: HMRC will consider each request for exemption on an individual basis and will make an decision based on individual circumstances. To make a claim for exemption, contact VAT: General Enquiries . Maintaining Records Digitally HMRC requires that all VAT Registered businesses keep the following records in digital format either within their MTD compatible software or in spreadsheets they are using to record their transactions. General Data Your business name The address of your principal place of business Your VAT registration number Any VAT accounting schemes that you use Supplies Made to Customers For each supply you must record: Time of supply – the tax point ( Invoice Date or date cash received if earlier) Value of the supply – the net value excluding VAT Rate of VAT charged (seperate records for Std Rated, Reduced Rate, Exempt and Zero Rated supplies) Supplies Received from Vendors For each supply received record: Time of supply (tax point) Value of the supply Amount of input tax that you’ll claim Note: HMRC will allow you to record a number of transactions as a single VAT record in a number of different circumstances such: Petty Cash Transactions Supplier Statement where multiple transactions are consolidated into single VAT categories - Std Rated, Reduced Rate, Exempt, Zero Supplies made by Agents Charity Fund Raising Events For More information on these items please refer to HMRC VAT Notice 700 / 22 Making Tax Digital VAT Return Summary Data For Each VAT Return your MTD compatible Software or Spreadsheets should contain: The total output tax you owe on sales The total tax you owe on acquisitions from EU member states The total tax you’re required to pay on behalf of your supplier under a reverse charge procedure The total input tax you’re entitled to claim on business purchases The total input tax allowable on acquisitions from EU member states The total tax that needs to be paid or you’re entitled to reclaim following a correction or error adjustment Any other adjustment allowed or required by VAT rules Adjustments Where adjustments are required to amend or correct data, these must be: Made within the Software or system itself or spreadsheets The totals of each adjustment should be included Digital Links - Mandatory under Making Tax Digital Digital links are the transfer of data electronically within or between different applications or software Formulas linking different cells or workbooks in a a spreadsheet Electronic links between different pieces of software used by businesses. Transferring data onto a memory stick, external hard drive etc for upload onto a different system. XML, CSV import and export, and download and upload of files Transfer by Application Program Interface (API) Other automated electronic transfers Emails Containing Data Files which are the uploaded onto other electronic systems The aim here is to ensure that a digital journey (audit trail) is maintained for the VAT returns submitted to HMRC. What are not Digital Links : Copy and pasting between spreadsheets and workbooks Written notes being copied from one system and entered in another Emails Containing Data Files which are the uploaded onto other electronic systems Sign up for Making Tax Digital for VAT Sole Trader, Partnership or Company HMRC: Sign up now Data and information you require to sign up: Your business email address Your Government Gateway user ID and password - if you do not have a user ID, you can create one when you use the service Your VAT registration number and latest VAT return Your National Insurance number if you’re a sole trader Your company registration number and Unique Taxpayer Reference if you’re a limited company or registered society Your Unique Taxpayer Reference and the postcode where you’re registered for Self Assessment if you’re a general partnership Your Unique Taxpayer Reference, the postcode where you’re registered for Self Assessment and your company’s registration number if you’re a limited partnership Agents signing up on behalf of their clients: What you need to do as an Agent to File VAT returns for your Clients Obtain / Create MTD Compatible Software or Spreadsheets. Create an Agent Services Account (note this is a separate account from your existing online agent account) For your existing clients that are already on your online agent account you will need to copy them across to your new Agent Service Account. Your clients VAT certificate Contact details and Business email For Sole Traders their NI Number For Companies their UTR for Corporation Tax HMRC : Sign up now Making Tax Digital For Small and Medium Sized Businesses Typically, these businesses will either maintain digital records using: Off the shelf MTD compatible Software ( including API based link to submit returns to HMRC themselves) Excel workbooks and spreadsheets and separate Bridging software used to submit Returns to HMRC) Use own accounting software or Spreadsheets to produce summary data and email or download onto a memory stick and pass to their agent who will then upload onto their own software for processing and filing to HMRC. Use an agent to record their Digital records using the agents own MTD compatible software or spreadsheets. The key challenge here is making sure all the relevant records for the VAT return are manually entered or uploaded into the software or spreadsheet workbooks and that there is the required digital linking within the software and more importantly within the spreadsheets being used. Whichever method is used, all VAT return data must be submitted using API's to HMRC. Making Tax Digital For Large Businesses For Large Businesses such as Banks or Manufacturing Companies, MTD can be much more complex and complicated in that: These organisations will have multiple systems that contain data required for VAT reporting Multiple VAT returns that feed into a main Group VAT Return Some of those systems will be supplied by external Vendors and digitalisation will require extensive liaison and possible development costs A lot of the data and processes used to support VAT reporting will be contained in excel workbooks which may or may not have adequate digital links There is usually a lot of manual processing which will have to be documented and eliminated It may require specific IT and Project management staff to implement an robust MTD solution It may need to build Tax Engines, Data Warehouses and internal API's to inter connect systems and for filing VAT returns with HMRC Key Things to Consider When Implementing MTD Successfully in a Large Organisation Will need to Identify and document all sources of Income and Expenses and the associated systems used to record and account for VAT. Will require the Identification and documentation of all manually processes and figures used to prepare the VAT returns Work should focus on eliminating manual processes and adjustments early on in the project Ensure you have staff with the right knowledge and skill set in place to build a robust MTD VAT reporting process Ensure there is a common set of mandatory fields to extract data from each system to ensure there is efficiency and completeness Decide on the structure and architecture of the MTD process. Will it be a purely internally developed or will it require the assistance of an external partner or software provider Its imperative to ensure that all requirements are documented and presented to the internal IT Teams or external IT teams to ensure there are no bottlenecks in the later stages of development. Build a data and Transformation warehouse specifically to store and process VAT information, static data tables and to transform the data into your VAT return. Ensure there is a project plan complete with overview of MTD, stages, timelines, budgets and costing, key personnel, any external vendor requirements and timelines, systems in scope, out of scope, manual adjustments that will require automation etc. Ensure controls are in place to maintain customer data integrity and confidentiality Use API's as much as possible to maintain and fully automate digital links If you have clients in multiple jurisdictions, you will need to link your static client data to your Tax Engine to ensure VAT is applied and calculated accurately based on client country of operation or location. If you are a complex partially exempt business and have a Partial Exemption Special Method , then consideration needs to be made as to how input VAT allocation and VAT recovery will work with the new MTD system. In larger more complex businesses such as Banks, there are likely to be multiple service companies and trading companies where service company incurred VAT is allocated to the different trading entities, product and service areas within these trading entities. (Basically allocating VAT incurred on general Back Office Costs to Front Office Areas). This can be a complex process and there will usually be an automated system or manual allocation process that manages this process. Making Tax Digital - VAT Guide on HMRC Rules for MTD

Discover the Key VAT implications and risks associated with Mergers and Acquistions including Consideration, Balance Sheet Completion Statements, Due Diligence, VAT Risks and much more. Introduction The term Mergers and Acquisitions refers to the activity of two or more companies combining to form one entity or one company acqu i ring the assets or shares of another company. The are a number of VAT issues associated with Mergers and Acquisitions some of which are listed below: The Recovery of VAT on Deal Costs The recovery of VAT on deal costs largely depend s on whether the costs are incurred to acquire or create a business that will be used to make taxable supplies going forwa rd (direct attribution). In other words the costs incurred must have a direct and immediate link to taxable supplies that will be made by the business being acquired. In such cases, the VAT is recoverable from HMRC on cost such as those listed below; Legal Fees Consultancy Fees Accountancy Fees Project Management Fees SPA Drafting Fees Corporate Finance Advisory Fees Due Diligence Fees Tax Advice Post Completion Structuring If on the other hand the target business was only making exempt supplies and this was going to continue post acquisition, then the VAT on the deal costs would be irrecoverable. However with many M&A deals the target is often acquired by purchasing shares which in itself is an exempt activity and as such means the associated deal costs can be irrecoverable. When a shareholding is used as part of an economic activity VAT may only be recovered if incurred in the course of an economic activity. Simply holding shares in order to receive dividends and perhaps to sell them for a capital gain is an investment activity and not an economic activity for VAT purposes. Therefore the VAT on the costs of acquiring and holding shares for either of these purposes is not recoverable. For the VAT to be potentially recoverable the entity acquiring the shares must do so, for some other purpose which is economic. For example Shares may be acquired and held temporarily as part of an activity of trading in securities. Trading in securities differs from investment in securities because the aim is to profit from short term movements in the price rather than the long term growth. A profit can be made regardless of whether the shares are increasing or decreasing in price. Trading in securities is an economic activity. A company may acquire and hold shares in subsidiaries to which it intends to provide management services for consideration. The provision of services for consideration is an economic activity. Following the CJEU decision in the joint cases Larentia +Minerva and Marenave (L+M) HMRC r eviewed its existing policy in respect of holding companies and deduction of VAT incurred on acquisition costs. Prior to L+M our policy was that VAT incurred on costs of acquiring shares by a holding company was only deductible where it was directly attributable to the provision of taxable management or technical services. VAT incurred had to be apportioned between non-economic activity of shareholdings and economic activity. Additionally, VAT on costs incurred by a holding company was only recoverable if the intention was to recoup the expenditure from the income resulting from taxable services provided to subsidiaries within a reasonable time. In L+M the CJEU held that VAT incurred by a holding company on the costs of acquiring shareholdings in subsidiaries, to which it also intends to provide taxable management services, must be regarded as belonging to the Holding company’s general expenditure and is deductible subject to any Partial Exemption restriction in place. In order to be able to deduct VAT incurred on costs of acquiring shareholdings in subsidiaries the following conditions must be satisfied: the holding company making the claim must be the recipient of the supply the holding company must be undertaking economic activity for VAT purposes that economic activity must involve the making of taxable supplies. If the holding company is VAT grouped with its subsidiaries, it makes taxable supplies or loans for which it earns interest and the loans support the making of taxable supplies by the VAT group. If the holding company is not the recipient of the supp ly, or is not undertaking economic activity, it will not be able to recover VAT. Is the Holding Company the recipient of the su pply HMRC consider that a holding company is the recipient of the supply where it has contracted for the supply, including by novation and it has made use of the supply, been invoiced and paid for the supply. Is the Holding Company undertaking economic activity for VAT Purposes In addition to an activity which any other business may undertake (supplies of goods and services more generally), the holding company is undertaking economic activity for VAT purposes where it makes or intends to make supplies of management services for consideration, to its subsidiaries. It is important to note that the management services must be genuine and provided for consideration which is more than nominal. Where the Holding company is passive with no economic activity of its own, any VAT incurred on the costs of acquiring subsidiaries is not recoverable, and this will still be the case if the holding company joins a VAT group with the acquired companies. For VAT to be recoverable, the costs on which it is incurred (including acquisition costs) must have a direct and immediate link to taxable supplies conducted as part of the economic activity. VAT will only be recoverable to the extent that those costs are used for the taxable activity. For more on the meaning of the term direct and immediate link see VIT21000 If a holding company provides taxable management services, to all its subsidiaries, then any VAT incurred on acquisition costs relating to the holding in those subsidiaries will be deductible. The receipt of dividends does not affect the deduction. However, if a holding company incurs costs on acquiring shares in subsidiaries intending to make taxable supplies to some of them, but not others, the acquisition of the latter subsidiaries is an investment activity and not an economic activity for VAT Purposes. Accordingly, the VAT incurred should be apportioned between the economic activities and the investment activities. Alternatively a holding company may incur costs on acquiring shares in a subsidiary to which it both provides management services and makes a loan in respect of which it earns exempt interest. In those circumstances any VAT incurred on costs relating to the holding must be apportioned between the taxable and exempt supplies in line with the company’s partial exemption method. Shareholding acquired as a direct, continuous and necessary extension If the shareholding is acquired as a direct, continuous and necessary extension of a taxable economic activity of the holding company, the VAT incurred may also have a direct and immediate link to taxable supplies and be recoverable. For example A retail company incurs costs acquiring a subsidiary whose main asset is a property from which the retail company intends to trade. In these circumstances the acquisition of the shares may be an extension of the retail business rather than an investment. If this is the case, the costs of acquisition are likely to be cost components of the retail supplies to be made from the property. The shares were acquired in order to obtain the property for the retail business. The VAT incurred will be recoverable to the extent that the retail supplies are taxable. A business acquires a direct competitor, a similar and complementary business or a key supplier/customer with a view (as the case may be) to increasing market share, achieving economies of scale, or achieving efficiencies through greater integration of its supply chain. In the above examples the shareholding is a direct, continuous and necessary extension of the existing business activity. There is no need for a specific supply (e.g. management services provided to the acquired business) to link the VAT costs to the existing economic activity. This is to be contrasted with: A company which purchases a business as a free-standing enterprise with a view to making money on dividends or an eventual sale. In the first two examples the buyer is buying to strengthen its business, but by contrast in the above example there is no direct link between the acquisition and its own business and the acquired business does not itself benefit by being part of a larger, similar operation. The VAT on costs incurred by the target of an acquisition, such as vendor due diligence costs, may also be deductible provided it can be shown that the target is the recipient of the supplies in question and those supplies were received for the purposes of the business carried out by the target. Intention to make taxable supplies If a holding company recovers VAT on acquisition costs because it intends to make taxable supplies to the subsidiary, it should retain evidence to demonstrate that this was the intended business model. Where a holding company can evidence a genuine intention to make taxable supplies to its subsidiaries but those services are not actually made then the normal input tax rules regarding intention to make supplies will apply. See VIT22000 Contingent consideration for management services Where a holding company incurs input tax on costs in providing or intending to provide management services to subsidiaries on terms whereby any payment will be contingent upon the profitability of those subsidiaries, then the holding company is not engaged in economic activity. This is because where services are supplied for no consideration or there is no contractual expectation that consideration will be received there is no supply for VAT purposes. The supplies in question are not being provided for a consideration because the essential direct link and reciprocity between the obligations on the one hand of the holding company to provide the management services and the obligations on the other of the subsidiaries to make a payment for those services, is absent. The issue of what constitutes a supply for a consideration has been the subject of a substantial body of case law. Most recently we have the decision of the Upper Tribunal in the case of Norseman Gold see VIT64050 Both the FTT and the Upper Tribunal on appeal considered the adequacy for the purpose of making taxable supplies of an intention to charge at some time in the future for services being provided. The FTT concluded that this would be insufficient in the absence of evidence of any agreement about the amount to be charged, the frequency with which invoices would be sent and the details of the services to be provided in exchange for the charge. It decided that it was important that the price or consideration is stipulated rather than there being ‘a rather vague intention to levy an unspecified charge, at some undefined time in the future’. The effect of a holding company joining a VAT Group Joining a VAT group does not, of itself give rise automatically to an entitlement to recover VAT. It cannot change a non-economic (i.e. out of the scope) activity into an economic activity. Nor does it automatically create a direct and immediate link between all input costs of a holding company and the taxable outputs of other VAT group members unless such a link can be traced through the intra group supplies, or the input costs are such that they are properly and naturally attributable to the VAT group’s taxable outputs. VAT grouping has the effect that all supplies are treated for VAT purposes as made to and by the representative member and imposes joint and several liability on all the members. It doesn’t have any other effect. If a member of a VAT group incurs costs which it uses for non-economic activities, then the VAT on those costs still relates to the non-economic activities and VAT grouping does not change that. The supplies are treated as being used by the representative member for non-economic purposes. If the holding company provides management services or loans in respect of which it earns interest (see VIT64050 EDM C-77/01) to the companies acquired in the VAT group and these can be seen to support the making of taxable supplies by the VAT group (identifiable by ‘looking through’ the supply chain within the group), the related VAT will be recoverable to the extent that the costs support taxable supplies made. This is the case whether the transactions within the group would be taxable or exempt supplies, were they not disregarded because of the VAT grouping. It is use that determines whether input tax is deductible and the existence of a direct and immediate link between the cost and the taxable supply. The question to ask is ‘has the VAT group incurred the costs for use in its economic activity?’ Th e Sale of Shares In a Subsidiary to Fund Business Expansion As illustrated in the case HMRC vs Hotel la tour , it is possible to recover input VAT on costs related to the sale of shares in a subsidiary which will be used to fund expansion of a taxable business. Basically the VAT was recoverable because: The costs were incurred to fund the businesses expansion providing ta xable supplies and as such the associated VAT was recoverable The costs were not incorporated into a component of the share price Sale and Purchase Agreement (SPA's) The sale or acquisition of a business will normally involve the drafting of a SPA which will set out the responsibility of each party under the agreement including the price of the deal, the assets and liabilities (Including Tax and VAT). Its important from a VAT perspective to ensure that all VAT receivable and payable is clearly identified and included in the SPA as an asset and liability respectively. Both of these elements will affect the final agreed deal price. Getting these amounts wrong can lead to future problems and disputes so its also important that the VAT cl auses within the SPA cover how to resolve such issues when they arise. For example The VAT receivable maybe based on invoices from suppliers which include VAT but have not been recovered from HMRC yet. If the invoices are issued to the existing busin ess owner under its VAT registration, then the new owners will not be entitled to VAT recovery under a new VAT registration number for the newly purchased entity. The VAT on such invoices will normally have to be recovered by the former owners of the business by submitting an Error Correction Notice (ECN) to HMRC. Acquisitions that Straddle VAT Return Periods. It is often the case that the date of acquisition occurs on a day that is in between the usual VAT reporting period of the business being sold or acquired. Where this happens, it can present a number of issues that need to be addressed to ensure accurate reporting of VAT to HMRC. Some examples are listed below: Output VAT payable and Input VAT recoverable reporting will need to align to the date up to the sale date Data extracted from systems used to provide information for the VAT return will need to be changed to reflect the new cut off date. Accounts Payable and Receivable teams will need to be informed of the deal date so invoices are issued and paid within the appropriate period. VAT payable and receivable post deal date will need to be settled by the new owners or transferred across from the existing owners respectively. The mechanism to effect this will need to be included in the VAT clauses of the SPA. VAT Recovery Forecasts Some businesses being sold maybe partially exempt and as such can only recover a percentage of the VAT they incur on their costs. VAT recovery will either be based on using the standard partial exemption method or by using a HMRC Agreed Special Method . In any cas e, where the business uses the gross method of VAT accounting by posting the cost and VAT to P&L based on invoices received from suppliers, it may forecast its VAT recovery credit on a monthly basis and annual basis. VAT recovery can have a significant impact on profitability especially for large businesses where irrecoverable VAT can be high. It is therefore important that the current owners of the business being sold ensure that VAT recovery forecasts are amended to reflect the shorter period of VAT / Financial Reporting. Due Diligence for VAT Risks Due diligence is the process that is carried out by a prospective buyer of a business to understand the business and assess any inherent and future risks to the business. It also involves a review and appraisal of the business to identify its assets and liabilities and evaluate its commercial viability as a going concern. There are many areas and aspects of the business that a potential buyer will want to review and assess before going ahead with the purchase or to ensure that any material issues identified are reflected in the final purchase price. Some of the main due diligence areas for review from a VAT perspective are listed below: Intercompany recharging agreements and recharges to identify any VAT liabilities including reverse charges applicable Controls in existence around intercompany invoicing and recharging The VAT accounting process and any existing input VAT receivables and output VAT payables The systems used to prepare the VAT returns including billing and accounts payable systems VAT registration periods are these monthly or quarterly / mixture of both Entities where payments on account are made to HMRC and the scheduled payment dates Systems used to extract values data, transaction counts, sales credits for Partial Exemption calculations External third party systems used to prepare the VAT returns and partial exemption calculations such as VAT consolidation systems, e filers, VAT allocation and analysis systems. Internal VAT preparation procedures and any VAT bibles Review and understand any Partial Exemption Special Methods agreed with HMRC. Is it up to date or due to be reviewed Any assessments issued by HMRC, penalties or interest due Overall relationship score with HMRC Existing staff and levels in the VAT team and who will be assisting with providing the necessary data to support the business sale List of existing VAT reliefs and agreements with HMRC that are in use in preparing the VAT returns Review of branch and subsidiary structures to ensure they are compliant from a fixed establishment perspective both locally and overseas. (See Skandia and Danske cases under the VAT News section. Any overseas entities and the existing tax authority relationships Pending and recent HMRC audits and also overseas tax authority audits Recent internal audit outcomes. Barter Transactions and Arrangements - How VAT is accounted for Existing property portfolio and who manages the billing for rent and service charges where these are sublet. (External management or internal) Options to Tax on properties in place with HMRC Level of client entertaining and whether the recovery is being blocked per HMRC rules Error Correction Notices (ECN) review for any potential future VAT risk Understand the business structure and transaction types VAT group members Understand the supply chain / product procurement process and existing contracts both local and global New product and changes to existing product signoff process by VAT Team VAT Coding used for transactions Tax Technology support. (Internal / external) Completion Accounts T he acquisition or disposal of a VAT registered business or a business that is part of a VAT group will require a due diligence review of the financial records f rom both the buyer and sellers perspective. As part of that review, a set of completion accounts will be drafted and agreed which will list all the assets and liabilities of the business being sold in order to make adjustments to the initially agreed purchase / sales price for the business. As part of this exercise, the seller will be required to declare / include all VAT a ssets (recoverable VAT debtors) and outstanding / pending VAT liabilities in the completion statement. Failure to do this can result in: The incorrect valuation of the business leading to under or over consideration payments for the business Unexpected liabilities for the buyer Irrecoverable input VAT for the buyer Post acquisition disputes / litigation As such, it is imperative that clear and specific VAT clauses are included within the sale and purchase agreements (SPA) by the tax / legal team to ensure that where lapses occur within the due diligence process, there are mechanisms to settle any losses and resolve any disputes post sale completion. Seller - Pre - Completion Date Responsibilities (List not Exhaustive) Ensure all recoverable input VAT is Identify and included within the completion statement Ensure all VAT payable amounts are identified and included within the completion statement De register the business for VAT or remove from VAT group as at date of completion Include the relevant VAT clauses as agreed with buyer Run all the necessary reports required for pre sale VAT reporting prior to the completion date Inform HMRC of the sale and change to the business or VAT group structure Amend the partial exemption method calculations and process notes where necessary. Inform HMRC of any required changes to the PESM Buyer - Pre - Completion Date Responsibilities (List not Exhaustive) Ensure adequate due diligence is undertaken by tax and legal teams and the necessary VAT clauses are incorporated in the SPA Register the acquired business for VAT or as a member of the VAT Group from date of completion Inform HMRC of any required changes to the agreed group partial exemption special method (PESM) Update the internal process notes for the acquired entity's VAT return preparation and compliance Ensure there are trained staff to oversee the acquired entities VAT compliance and reporting process MTD requirements for acquired entity Transitional Service Agreements (TSA) Normally as part of the sale of a business, the buyer and seller will come to an agreement known as a TSA to ensure there is a smooth transition of the business after the deal has been signed. This will ensure that there is continuity of the business post sale and these TSA's can normally be in place for between 1 to 2 years. They can cover areas such as: Ongoing IT Support by the seller Use of Sellers systems for a period Supply of sellers staff to maintain BAU Use of Buildings where the leases are still in the name of the seller Logistical support etc TSA's need to be drafted and operated correctly from a VAT perspective. Some of the key points are listed below: TSA invoices issued to the new owner need to show the correct VAT liability depending on the service being provided Costs associated with the TSA will normally need to be ringfenced in a specific cost centre to segregate them from the sellers existing BAU costs. VAT incurred by the seller on costs that have been ringfenced as above will often be fully recoverable as they are directly attributable to the taxable supply of services provided to the buyer. If the cost and VAT cannot be ringfenced then full recovery of VAT will most likely not be possible. Contains public sector information licenced under the open Government Licence v3.0 Mergers and Acquisitions VAT

Find out how VAT works in Nigeria including the VAT liability of goods and services, VAT registrtaion, imports and exports, e invoicing and much more. Nigeria VAT Introduction Nigeria’s Value Added Tax system has undergone a major transformation with the Nigeria Tax Act 2025, which officially took effect on January 1, 2026. This reform consolidated over 60 disparate taxes into a modern framework, re-branded the tax authority, and introduced significant reliefs for small businesses and households. VAT (Value Added Tax) is a consumption tax levied on goods and services at the rate of 7.5% in Nigeria. See summary below of goods and services which are vatable or exempt. Vatable Goods (7.5%) Televisions Telecommunications Electronics Professional Services Banking and advisory fees Furniture Bags Shoes Jewellery Car parts Crypto Transactions Vatable Services (7.5%) Accountancy Consultancy Engineering Legal Catering Entertaining Motor Repairs Exempt Goods Medical and pharmaceutical products Basic food Baby products Books and educational materials Agricultural Machinery Commercial Aircraft / Engine's and spare parts Exempt Services Medical services Banking Tuition / Education Services Airline Tickets Hire , rental, lease of agricultural equipment Exports of services Zero Rated Export of Goods Non Resident Companies Non resident companies making taxable supplies of goods or services in Nigeria must register for VAT and can appoint a representative. If the foreign supplier is not registered, the Nigerian customer's bank or payment processor may be directed by the NRS to withhold the 7.5% VAT at the point of payment. Thresholds & Registrations The 2026 reform significantly raised the bar for who must participate in the VAT system, exempting many micro and small enterprises. Domestic Businesses: You are only required to register and charge VAT if your annual turnover exceeds ₦50 million (raised from ₦25 million). Small Companies (≤ ₦50m): Do not charge VAT but cannot reclaim input VAT on purchases. Non-Resident Suppliers (Digital Services): Foreign companies (like Netflix, Google, or SaaS providers) must register if their annual Nigerian turnover exceeds $25,000. Mandatory TIN: The Tax Identification Number (TIN) is now harmonized with the National Identification Number (NIN). Every VAT-registered business must use its TIN on all invoices. Input VAT Recovery Nigeria uses a restricted "Input-Output" mechanism. You can only reclaim VAT paid on goods that are purchased for resale or used directly in the production of new goods. Recoverable: VAT on raw materials and stock-in-trade. Non-Recoverable: VAT on "overheads" (rent, electricity, professional fees) and capital expenditure (machinery, vehicles). These must be capitalized or treated as an expense in your Income Tax return. 2026 Refund Update: The NRS has introduced an automated refund system for exporters and businesses with consistent 0% rated supplies, provided they use the e-invoicing portal. E Invoicing and Digital Services The Federal Inland Revenue Service (FIRS) has been officially renamed the Nigeria Revenue Service (NRS) as of 2026. From 1, 2026, Nigeria has introduced mandatory e-invoicing for all medium and small VAT-registered businesses. Invoices must be generated in a structured XML/JSON format. They must be transmitted in real-time to the NRS's Non-compliance or failure to issue a valid e-invoice can result in a fine equal to 50% of the invoice value. VAT Return Filing Deadlines and Penalties Compliance is strictly monthly. Deadline: Returns and payments must be submitted by the 21st day of the following month. Currency: If you transact in foreign currency (USD, GBP, EUR), you must remit the VAT in that same currency.

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Denmark VAT Guide including VAT rates, VAT rules, VAT registration, imports and exports, etc and much more. Denmark VAT - VAT Guide on How VAT is Applied in Denmark Denmark has a single Standard Rate of VAT at 25% and does not have reduced VAT rates. There are three categories: Standard Rate (25%): This applies to most goods and services. Zero-Rated: Certain supplies, such as exports and specific international services, fall under this category. Exempt: Some services, like health care, teaching, and real property, are exempt from VAT. Self-employed business owners must register for VAT. Register for VAT at indberet.virk.dk . Voluntary Registration If self employed and sales subject to VAT are less than DKK 50 000 over a 12 month period, registration is voluntary. (Up to trader if they want to register. Once registered, VAT must be paid on sales subject to VAT regardless if they are below DKK 50 000 over a 12 month period. Mandatory Registration VAT registration is mandatory a business’s sales that are subject to VAT exceeds DKK 50,000 over a 12-month period. VAT registration is also mandatory if a business knows that its sales will exceed DKK 50 000 over a 12 month period. You must register no later than 8 days before you start your business. Special Registration Some business will require a special registration in addition to the ordinary VAT registration if: The business imports goods from countries outside the EU. In that case, you must register as an importer at indberet.virk.dk. The business rents out commercial property and charges VAT on the rent. In that case you must complete form no. 31.001. Exempt Services If you sell certain services, you are exempt from VAT. As a general rule, you pay payroll tax instead of VAT. Services that are exempt from VAT include certain types of healthcare treatment services or teaching services. You can have both sales that are subject to VAT and sales that are exempt from VAT, for example if you sell goods such as lotions and provide VAT-exempt healthcare treatment services. You only have to pay VAT on the sales subject to VAT. Note Source of Information (Danish Tax Authority) VAT Skat.dk VAT Exempt Services VAT on International Trade VAT Deductions Invoices & Record Keeping

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

Guide on General Partnerships and who is responsible for paying VAT to HMRC and how VAT recovery works. Introduction A Limited Partnership is a form of investment vehicle used mainly by companies or individuals to secure investment for projects or private equity holdings. These partnerships will contain: A General partner who is responsible for the day to day management and administration of the partnerships investments and assets and has unlimited liability for the partnerships debts and obliigations. Limited partners make investments in the partnership but do not have any responsibility for the day to day running of the firm and their liability is limited to their initial investment in the firm. Accounting For VAT The General Partner will be the individual or company that will have to register for VAT once they exceed the VAT threshold and will also be responsible for filing VAT Returns and paying VAT on behalf of the partnership. The Limited Partners will have no obligations in relation to VAT reporting. The General Partner will typically charge and invoice the Limited Partners for Management Fees for managing their investments / running the business and this will include Output VAT if they are registered for VAT. The General Partner will also incur cost in relation to managing and administering the partnership. Some of these costs will include Input VAT which the General Partnership can recover depending on their Partial Exemption Recovery Rate. -Contains public sector information licensed under the Open Government Licence v3.0. Limited Partnerships and VAT

Check a VAT number is valid and not fraudulent by using the HMRC (UK) validator and EU VIES system validator on this page to verify VAT registration numbers VAT Registration Number - Check Its Valid Use the links below to check that a VAT Registration number in the UK or EU is valid and not fake. Avoid dealing with fraudulent companies. UK VAT Number Check EU VAT Number Check