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Place of Supply Rules Introduction The place of supply rules are an important aspect of VAT as they determine if a supply takes place within or outside the UK and as such whether VAT applies to a supply or not. Place of supply of Goods Goods supplied to customers in the UK and remain in the UK are subject to UK VAT. This includes goods purchased from a supplier who assembles them and they are not removed from the UK. Goods supplied to overseas customers where the goods are removed or assembled outside the UK are outside the scope of UK VAT Place of supply of Services The place of supply of services primarily depends on what service is being supplied and whether the supply is to a Business Customer (B2B) or a Private Individual (B2C) . General Rules The general rules as per the VAT Act 1994 for (B2B) and (B2C) are as follows: The place of supply for Business to Business supplies (B2B) is where the customer belongs The place of supply for Business to Customer (private individuals, charities or government organisations) supplies (B2C) is where the supplier belongs unless the services are specified supplies such as accountancy, financial and insurance, consultants, lawyers, engineers, supply of staff, banking, provision of information, data processing etc. Specific Business to Consumer (B2C)services such as transfers and assignments of copyright, patents, licences, trademarks and similar rights, acceptance of any obligation to refrain from pursuing or exercising a business activity, advertising services, services of consultants, engineers, consultancy bureaux, lawyers, accountants, and other similar services — data processing and provision of information, other than any services relating to land, banking, financial and insurance services, the provision of access to, or transmission or distribution through, natural gas and electricity systems and heat or cooling networks and the provision of other directly linked services, supply of staff, letting on hire of goods other than means of transport, emissions allowances are also supplied where the customer belongs. Such services supplied to non UK customers are outside the scope of VAT and are thus Zero Rated. Services Supplied in UK to UK Customer Taxable services supplied by UK VAT Registered Businesses to UK Business Customers (B2B) = VAT Applicable on the Supply Taxable services supplied by UK VAT Registered Businesses to UK resident private individual (B2C) = VAT Applicable on the Supply For example - if a UK business supplies legal services to a private individual in the UK then 20 % VAT would be applicable Services Supplied to a Non - UK Customer Taxable services supplied by UK VAT Registered Businesses to Non UK Business Customers (B2B) = Zero Rated Taxable services supplied by UK VAT Registered Businesses to a Non UK resident private individual (B2C) = Zero Rated B2B - Supplies to Non UK Customers Evidence Where UK businesses are providing services to non UK business customers, they must satisfy themselves that the customer is actually in business. This is normally evidenced primarily by the following: The customer providing a VAT registration number and then verifying via the Vies system if in the customer is in the EU or other local government VAT number checkers. The company having a registration number with their local registrar of companies. Corporation or other local business tax number Note: If a UK business cannot verify that the customer they are supplying is in business, then HMRC requires them to charge 20% VAT on their supply similar to if they were supplying a non UK resident private individual. Basically Treat the supply as a B2C supply. For example if a UK company is supplying accountancy services to a company in Germany but it has received no information such as a VAT registration number or company number or any other evidence to verify that it is actually in business, then the UK company should charge 20% VAT on the supply. B2B - Supplies to Non UK Customers that Make both Business and Non Business Supplies Where a UK business makes supplies to non UK organisations that have both business and non business activities such as charities or Government organisations, then the supply should be treated as B2B and treated as outside the scope of UK VAT / Zero Rated. If on the other hand the charity or Government organisation was only carrying out non business activities, then the supply should be treated as B2C and VAT applied at 20% accordingly. Establishment and the place of Supply The Establishment most closely linked with a supply will usually determine whether or where VAT is applicable. Where an establishment is actually providing the services, this should normally be reflected in the contract. However, where the contract conflicts with the substance and reality of the situation, the supplier should normally be treated as belonging at the establishment from which the services are actually provided. For example if company (A) in Germany contracts with customer (B) in Germany to supply consultancy services to its London Branch (C) and the actual consultancy services are provided by (A's) London registered company then the place of supply will be seen as the UK and as such 20% reverse charge VAT would be applicable as the contract for services is in substance between Company (A) and the London Branch of (B) company (C) Key Indicators for Determining the Establishment Most Closely Linked with a Supply Where are the necessary human and technical resources (for example database, technical equipment, office equipment, telephones, and so on) for actually providing the services permanently based Which establishment appears on the relevant contracts, correspondence and invoices Does reference to the preferred establishment lead to a more appropriate or rational result for tax purposes What is the significance of the activities carried out at each establishment in contributing to the services provided Services where Place of Supply General Rules do not Apply Land and Property Related Services The place of supply of services related to land and buildings is where the actual property is located and not where the supplier belongs This includes: Purchase and sale of Land Estate agents, surveyors, architects, engineers etc involved in land related transactions Hotels and accommodation Construction, alterations, demolition, repairs and maintenance, engineering in relation to land and buildings Admission to Event The place of supply for admission to an event is where the event takes place. By events we mean sporting, conferences, exhibitions, music events etc. For Example - a company in the UK buying tickets to a rugby match held in Ireland to entertain staff. The place of supply in this case is Ireland. Note: The following services provided Are not Admission to an Event and the place of supply of these services is covered under the general rule - B2C = where the supplier is located and B2B where the customer is located. (Unless only the admission is provided which gives the right to attend an event) Sporting event services such as appearances by sports personalities for a fee or organisation of race events or tournaments Educational services such as conferences organised and supplied to businesses. Entertainment services such as performances by artists, DJ's where their services are hired. Exhibitions Hire of Means of Transport The hire of short term transport (30 continuous days for cars, vans, bikes, scooters etc and 90 continuous days for vessels) is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired. So if a van is hired by a UK business from a French van hire company to use while setting up its French office, then UK reverse charge VAT would not be applicable as the place of supply is in France and thus outside the scope of UK VAT. Catering and Restaurant Services The place of supply rules for restaurant and catering services is the country where the actual physical supply takes place. Use and Enjoyment Rules Use and employment rules apply mainly to telecommunications, broadcasting and electronically supplied services. Basically the use and enjoyment for these services take place in the country they are consumed and as such do not follow the general rule. For Example: If a UK business provides telecommunication services to a UK business customer but the actual services are consumed in France, then the place of supply is France and is outside the scope of UK VAT. If a Spanish satellite broadcaster provides broadcasting services to UK consumers, then the place of supply would be where the broadcasts are consumed and thus UK VAT will be applicable. If a UK business purchases software from a Irish vendor and is used in its Jersey office only, then the supply would be outside the scope of UK VAT as the services are consumed in Jersey. If a German company purchased web hosting services from a US company and the web hosting is used primarily in the UK, then as these services are consumed in the UK VAT is applicable. -Contains public sector information licensed under the Open Government Licence v3.0.

Find out how VAT works in Austria VAT including VAT rules, VAT registration, imports and exports and much more. VAT - Ghana VAT - Ghana Austria-VAT Introduction There are three main rates of VAT in Austria, Standard Rate 20% , Reduced Rate 13% and Reduced Rate 10%. VAT Rates VAT Exemptions VAT Return Taxable Supplies Invoicing Reverse Charges Input VAT Deduct

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 comprehensive guide on Tax Risk and Control Frameworks for VAT, including the interation with SAO signoff, BRR, Internal and Externaland Internal Audits, Organisational Culture and HMRC guidance. Risk and Control Framework - VAT Risks & Controls for Organisations VAT Risk & Control Framework - Key Components VAT Risk Register SAO Checklists for Function Heads Documentation of all VAT Processes Risk & Control Employee Objectives Annual Entity Risk Review / Rating Internal & External Audits Board Level / Management Review, Sign-off & Communication Periodic Review & Testing of Controls Uncertain Tax Treatments Flow Diagrams & Decision Trees Business Risk Reviews Service Level Agreements GFC's HMRC Complinance Guidelines Company Risk & Control Culture Introduction A VAT risk and control framework is a documented and structured system to identify, manage, and mitigate VAT risks to ensure accurate and compliant VAT and GST reporting to a local tax authority (HMRC in the UK). It involves establishing a VAT risk register, defining key controls, who is responsible and accountable for them, confirming controls are documented, applying a risk weighting for each risk and conducting regular reviews and testing of each control to ensure they are effective and thus preventing tax authority penalties. It is important for a risk and control framework to be a "living document" in that it is constantly reviewed and updated to ensure that an organisation continues to mitigate risks associated with Indirect Tax. VAT can be a significant cost to a business, especially those that are partially exempt (unable to recover all of their input VAT from HMRC that they incur on their costs. For example, Large multinational banks and insurance companies. Senior Accounting Officer Sign off Where an organisation has a Risk and Control Framework for VAT & GST, it will assist and enable the Senior Accounting Officer to sign off their annual declaration to HMRC confirming that the organisation: Has adequately documented its controls and processes for the following areas - Customer on-Boarding, Accounts Payable and Receivable, Inter-Company Recharging, Capital Good Scheme, Partial Exemption Methods agreed with HMRC, Internal VAT Allocation Methodologies for VAT recovery, Outsourced Services, Finance and Tax Service Centre supplied services, VAT and other Indirect Tax System change processes, Automated Processes. Front End System to SAP System Interfaced Transactions, Payments Outside of the Accounts Payable Processes, International VAT Transaction Compliance, Imports and VAT compliance, Entertainment and Company Events Compliance, Employee Expenses and VAT etc. Has carried out testing of these controls Has complied with all the necessary VAT legislation in relation to returns filed with the tax authority Has adequately trained staff with the appropriate qualifications and experience to prepare returns, advise and monitor VAT & GST risks Has filed accurate VAT and GST returns on time and paid the correct amount of tax Has appropriate VAT accounting and reconciliations procedures Has documented and reviewed all new products and services to ensure the correct VAT treatment from a systems and billing perspective Has reviewed any changes in business structure to ensure there has been correct inter-company billing Is MTD compliant Is E invoicing compliant post 2029 Uncertain Tax Treatments An organisations VAT Risk & Control Framework should include a control that ensures that any uncertain tax treatments which have a tax advantage of more than £5 million for each relevant period are identified where and organisations: Turnover is over £200 million in a financial year Balance sheet total is over £2 billion in a financial year HMRC Risk & Controls Guidance for VAT (GFC8) HMRC (UK Tax Authority)have issued guidance on the risks and controls and requirements (GFC 8) that they would expect organisations to adopt to demonstrate that their VAT processes are documented and robust to ensure accurate reporting and compliance. Its important for organisations to review this document and embed any control gaps within their processes as this will enable HMRC to have greater confidence in their risk and controls culture and processes if they conduct an audit. Business Risk Review HMRC or other global tax authorities may conduct Business Risk Reviews as part of their risk and compliance monitoring of organisations. This will involve HMRC evaluating overall Tax and VAT governance, billing and VAT reporting systems, documentation of processes, risk and control frame works to determine if risks are being effectively managed. The aim will be to provide a business with a risk rating high, medium or low and as such will determine how often they scrutinise the business in future. As such, if an organisation has robust Risk and Control Framework for VAT & GST and it is embedded within the company's culture then this will help businesses in securing a low VAT BRR rating. Internal & External Audits Having a VAT Risk and Control Framework will be a good premise for the internal and external auditors to review at the start of their audit. It will provide a greater understanding of the business, inherent risk and how they are being managed or mitigated. Without a VAT risk and control framework, auditors will have to conduct a more extensive audit to gather information that would normally be included within a risk and control framework document or pack. Board Level Approval and Embedding a Visible Risk Culture Having a VAT Risk and Control Framework Document is a good start but one has to always ask, how will the controls be implemented, tested and embedded within the culture of the organisation. Unless a company has a strong risk and control culture embedded from Board level down, having a VAT / Tax Risk and Controls Framework document may not be enough mitigate against Finance, Tax and VAT risks. As such, It is important that the TAX / VAT Risk & Controls Framework becomes part of an organisations culture by building it into employee objectives, recruitment policies, company policy and backed up by inter functional Service Level Agreements (SLA's) which can be reviewed against performance annually.

Israel VAT Guide - VAT rates, VAT on goods and services, digital services, e invoicing, reverse charges, input VAT deduction and more. Israel - VAT VAT in Israel is administered by the Israel Tax Authority which was established in 2004. Sales The standard VAT rate in Israel is 18% and is applicable and applied to most goods and services at bought and sold in Israel including the importation of goods from outside Israel and on services purchased from outside Israel where reverse charge VAT is applicable and payable by the customer. There is no VAT registration threshold in Israel and you are obliged to register as a dealer if you sell goods or provide services although you can be classified as an exempt dealer if annual turnover is lower than 120,000 NIS and you open an exempt dealer file online, via a local representative or physically visiting the local tax office with the appropriate documents. The export of Goods and Services is Zero Rate for VAT purposes. Non resident online vendors selling digital services to residents in Israel need to register for VAT locally by using a representative. The basic tax point for goods is when the goods are delivered regardless of when consideration or cash is received for the goods. To alleviate cash flow for small businesses with a turnover that does not exceed 2M NIS, they will be required to pay VAT on receipt of the proceeds of sale. (However if an invoice is issued, then the VAT on the invoice must be included in the figures reported for VAT. Purchases and VAT Recovery Input VAT (VAT incurred on purchases) and paid on imports is deductible from VAT owed on sales provided the input VAT is incurred for business purposes and is directly attributable to taxable sales. (standard and zero rated) Input VAT incurred in relation to supplies of exempt goods or services is not deductible. Input VAT incurred prior to VAT registration is deductible provided it is and can be proved that it was incurred and used for the establishment of the business. For more information on how VAT is applied and the Tax Authority rules, please see the link below to the Israel Tax Authority website. Link below for more information guide to the new VAT dealer Source ITA

UK Tax Rates: Corporation Tax, Income Tax, Inheritance Tax and VAT United Kingdom TAX Rates Corporation Tax Rates Rate 2024/25 Main Rate 25% Small Profit Rate 19% Marginal Rate 26.50% Capital Gains Tax Rates Asset 2024/25 Residential Property 25% Other Assets 19% Investment Trust 28% (Carried Interest) * Tax Free Allowance £3,000, £1,500 Unit Trusts Inheritance Tax Rates Band Taxable Income Tax Rate Tax Free Threshold £325,000 0% Taxed Above £325,000 40% Tax on Dividends Income Tax Band Tax Rate Over the Allowance Basic Rate 8.75% Higher Rate 33.75% Additional Rate 39.35% * Dividend Allowance TY 2024 /2025 = £500 VAT Rates Rate 2024/25 Standard Rate 20% Reduced Rate 5% Zero Rate 0% Income Tax Rates Band Taxable Income Tax Rate Personal Allowance upto £12,570 0% Basic Rate £12,570 - £50,270 20% Higher Rate £50,271 - £125,140 40% Additional Rate £125,140 and above 45% Personal Savings Allowance Income Tax Band Personal Savings Allowance Basic Rate £1,000 Higher Rate £500 Additional Rate £0 Stamp Duty Land Tax (SDLT) Property Value SDLT Rate 0 to £125,000 0% £125,001 to £250,000 2% £250,001 to £925,000 5% £925,001 to £1,500,000 10% £1,500,001 and above 12%

Global e invoicing guide - e invoicing explained including the different e invoicing models, UK, EU, Americas, Middle East and Asia timelines and updates. Electronic Invoicing - Guide on e invoicing, Models and its Global Implementation What is Electronic Invoicing Electronic Invoicing (e-invoicing), is the process where invoices are digitally exchanged between suppliers and buyers. An e-invoice is an invoice that has been issued, transmitted and received in a structured data format which allows for its automatic and electronic processing. Electronic invoicing in Europe for businesses and Public Administrations is governed by the EU Standard on e-invoicing with its foundations based on the EU e-invoicing directive. This model has also been adopted by other non EU countries such as Australia, Singapore, Japan etc . Many countries in Europe and around the world have already implemented or are adopting e-invoicing for Business to Government (B2G) (Public Administration) and Business to Business (B2B) invoicing as they continue to move into the digital age. Benefits of Electronic Invoicing: Eliminates the need to review paper invoices Introduces integrated electronic formats into invoicing processes Streamlines the Accounts Payable process with E2E automation for invoicing and payments Reduces risk and improves accuracy Reduces invoicing processing costs as automated Enables companies to manage their procurement and invoicing with Government Institutions more efficiently Faster processing and payment of invoices Facilitates greater Electronic Invoicing in Europe E-invoicing in the UK E invoicing as announced in the UK Autumn Budget of 2025 will be mandatory in the United Kingdom from 1 April 2029 for both B2B and B2G VAT invoicing. While e-invoices can currently be used in the UK, there are no formal standards setting out their format, content, application, or delivery. This means that there is no generally accepted model, and multiple, potentially incompatible, approaches can be in use. The exception to this is suppliers to NHS England who are required to issue e-invoices via the Pan-European Public Procurement On-Line (PEPPOL) network. Although several accountancy software providers offer e-invoicing capability in the UK, we understand that the uptake of e-invoicing is low. Why are standards important? Interoperability: They facilitate the seamless exchange and automated processing of e-invoices between businesses even if they use a different provider (like sending a text to someone on another phone network) preventing the need to use different systems for each supplier/buyer. Network effect: Interoperable systems improve business administration efficiency helping to reduce cost and administrative burdens. E-invoice standardisation reduces the work businesses need to do to onboard and maintain suppliers and buyers on their systems. With higher uptake and improved interoperability these benefits are increased. International trade: As increasing numbers of countries adopt e-invoicing models, increasing numbers of UK businesses will need to engage with international systems. Adopting a standard that supports interoperability with international trade partners could support trade and UK businesses. Current standards in the UK An example of standard setting in the UK is the NHS requirement for suppliers to use the PEPPOL standard. The PEPPOL standard is a network used globally by most EU member states, Australia, Japan and Singapore. E-invoices from suppliers in countries mandating PEPPOL and the UK’s NHS can be processed by IT systems with ease, as they share a common standard. This facilitates automated invoice processing, driving efficiencies across both international trade and domestic transactions. Other international standards PEPPOL is not the only international e-invoicing network setting standardised format. There are numerous international, and country specific standards driven by regional and national differences as well as industry specific needs. In this consultation we are not looking to identify a specific standard or standards to adopt in the UK but broader views on how standards could be used to support e-invoicing adoption and increase potential benefits. Models and approaches Voluntary / Mandated Globally, many countries have taken different approaches to e-invoicing. This includes whether to introduce a mandate. Examples of countries who currently have voluntary models of e-invoicing for Business-to-Business transactions include Singapore, New Zealand and Australia. Each of these countries has introduced standards for software providers to adhere to, to support interoperability between businesses who choose to adopt e-invoicing. Adoption levels have varied between jurisdictions, sectors and business size. Conversely, countries across Latin America, Asia and Europe and several EU member states have introduced mandates for e-invoicing. Businesses falling within a mandate are required to issue and receive e-invoices for all relevant transactions. In the UK, a business can choose whether to adopt e-invoicing systems into their business systems. Under this voluntary system we are seeing increasing number of software providers including e-invoicing as part of their accounting packages. This does carry risk as a business does not know if their supplier will provide e-invoices or their customers will accept them, creating the potential for having to run dual systems. This may reduce the potential benefit of investment. The network effect created by a mandate could maximise the potential benefits of e-invoicing. What is included in mandates varies globally. Examples for Business-to-Business and Business-to-Government transactions could include (but are not limited to): Requiring that e-invoices are issued for all Business-to-Business supplies Requiring that e-invoices are issued for all Business-to-Government supplies Requiring all businesses over a certain size to be able to receive e-invoices Requiring all businesses over a certain size to both issue and receive e-invoice E-invoicing models When considering different models of e-invoicing, a key question is whether a model has centralised or decentralised platforms. With a centralised model, e-invoices are submitted to the tax authority before being issued to the buyer. With a decentralised model, there is no central ‘hub’ through which invoices are routed, with businesses submitting their invoices through their software providers direct to their customers. Centralised models
 Centralised models have been implemented in several countries (such as Italy and Chile) and they require the government to build a centralised system and process all invoices. This model does not always improve business efficiency and is costly for tax authorities to implement, and we do not plan to explore this model in detail. Supplier creates e-invoice and submits to the Central Platform. Central Platform receives the e-invoice and takes any required actions before issuing on to the Customer. This could include standardising, retrieving data or validating and clearing. Customer receives and processes the e-invoice. Payment issued to supplier. Decentralised models In a simple decentralised e-invoicing system, a supplier’s financial system generates an invoice for the buyer. This information is passed through the invoicing network which validates key information. This information is then passed to the buyer’s financial system where it is reconciled against the purchase details and is ready to be paid. This is also sometimes known as a 4-corner model and has been implemented in Belgium and Australia. Businesses use software providers to issue and receive invoices. When Business A issues an invoice to Business B, they upload it onto their e-invoicing platform. Business B then receives it via their platform and it automatically enters their accounting software. Business B can then check the invoice and either query it or issue payment. 4-corner’ model E-invoice created by supplier Supplier’s software provider issues e-invoice Customer’s software provider receives and processes e-invoice Customer issues payment to supplier Decentralised models can be complementary to Making Tax Digital and further build on the business and tax benefits observed in the digitalisation of business records. They also provide greater flexibility to businesses to choose a platform and supplier that fits within their business needs. Real time reporting and Continuous Transaction Controls (CTC) Both centralised and decentralised models offer the opportunity for real or near real-time reporting of transactional data to the tax authority and has been implemented in a number of countries (such as Hungary and South Korea). This data transfer could potentially be automated to support and simplify businesses tax reporting processes and improve tax compliance activity. Decentralised data share model may work as follows: There are variations in how this is actioned globally: E-invoice created by supplier Supplier’s software provider issues e-invoice Customer’s software provider receives and processes e-invoice Customer issues payment to supplier E-invoice data is shared in real time, or close to real time with the tax authority. This can occur at the same time the e-invoice is issued, or shortly after. Centralised data share model may work as follows: There are variations in how this is actioned globally: Supplier creates e-invoice and issues through the Central Platform Central Platform reads the required data and issues the invoice to the Customer Customer receives and processes the e-invoice Payment issued to supplier Real-time reporting requires businesses to submit transactional data to their tax authority in real or near real-time. CTC and Decentralised CTC and Exchange (DCTCE) models contrast to the current VAT system as they allow tax authorities to better estimate VAT income, detect discrepancies, identity fraud and support businesses to get their tax right. By building in a data feed to HMRC, it could enable HMRC to take further steps to simplify tax reporting, reduce error and support businesses to get their tax right. This could include: improving accuracy of the VAT return and facilitate nudges and prompts to reduce errors more targeted compliance activity reducing the need for compliance engagement and visits to compliant businesses supporting HMRC efficiency A data feed also provides potential wider benefits for government efficiency: provides an improved understanding of the economy possibility of using data for business support schemes (for example, in emergency situations similar data has been used to develop and implement business support) The inclusion of a data feed can also be implemented later following the creation of a decentralised system without data sharing. For more in-depth understanding of the EU e Invoicing Directive and the current status of e invoicing globally for B2G (Business to Government), G2G (Government to Government), B2B (Business to Business) and B2C (Business to Consumer), please use the links below. Europe e Invoicing Country Factsheets for each Member State and other countries (europa.eu) Malaysia Tax Authority - e invoicing https://www.hasil.gov.my/en/e-invoice/ Singapore Government Agency - e invoicing https://www.imda.gov.sg/how-we-can-help/nationwide-e-invoicing-framework For more of a detailed and interesting read on global e - invoicing and mandates and challenges faced with implementation of E - Invoicing, please see links below. E-invoicing compliance simplified: Global mandates and trends (Source - Gulf News Feb 24) 2024 Guide to Global e-Invoicing Mandates Position Paper | OpenText https://www.pagero.com/uk/blog/what-is-an-e-invoice (Note these links are displayed here for information purposes only and are not intended to convey ownership or endorsement) Please see below e invoicing country snapshots for B2G / B2B / B2C including implementation timelines. Belgium - E Invoicing Belgium - B2B E Invoicing. On 1 February 2024, the Belgian parliament approved the law implementing mandatory domestic B2B e Invoicing in Belgium as from 1 January 2026. Royal Decree published on 14 July 2025 confirms that the Peppol network will be the default method for issuing these invoices. Estonia E Invoicing Estonia - will roll out B2B E- Invoicing in two phases. Phase 1 - July 2025 buyers can request e invoices from their suppliers Phase 2 - 2027 Mandatory E - Invoicing for all B2B transactions. France - E Invoicing Mandatory B2B E Invoicing - The issuance of e Invoices in France will be made mandatory in September 2026 for large companies and mid-cap companies, and in September 2027 for Small and Medium Enterprises (SMEs). From September 2026, receiving e Invoices will be mandatory for everybody. Germany - E Invoicing - Mandatory B2B 1 Jan 2025 Mandatory B2B Invoicing introduced from 1 Jan 2025 - Transitional period - Mandatory issuance of e Invoices in Germany for companies with an annual turnover exceeding 800 000, 00 EUR will occur in 2027 and the mandatory issue of e Invoice for every B2B transaction will come into effect in 2028. Greece E Invoicing Mandatory B2G e Invoicing since September 2023 Mandatory B2B e Invoicing proposed 2 February 2026 Italy - E Invoicing Mandatory E invoicing - As of January 2019, e Invoicing in Italy has been mandatory for B2B and B2C among Italian operators. . Malaysia - E - Invoicing Mandatory E - Invoicing from 1 August 2024 for larger entities then phased in stages to end of 2025. Timeline * Taxpayers with an annual turnover or revenue of more than RM100 million - 1 August 2024 * Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million - 1 January 2025. * Taxpayers with an annual turnover or revenue of more than RM500,000 and up to RM25 million - 1 July 2025. * Taxpayers with an annual turnover or revenue of up to RM500,000 - 1 January 2026 Nigeria E - Invoicing The Federal Inland Revenue Service (FIRS) will begin rolling out E invoicing in Nigeria using the Merchant Buyer Solution (MBS) platform from 1 August 2025. Larger taxpayers or companies with revenue of N5bn or over have been granted an extension to 1 November 2025 to onboard onto the MBS. For more information on how the MBS will operate, please visit https://einvoice.firs.gov.ng/ Norway E-Invoicing Norway Proposes Mandatory B2B E invoicing from 1 January 2028 Pakistan - E invoicing Pakistan - Federal Board of Revenue - Mandatory e invoicing for all sales tax registered businesses to be introduced in phases from September 2025. https://download1.fbr.gov.pk/SROs/2025811681810559SRO1413.pdf Poland - E Invoicing. E Invoicing B2B - Mandatory e Invoicing for all commercial transactions (B2G and B2B) e Invoicing from April 2026. Portugal E - Invoicing The European standard on e invoicing The European standard on e Invoicing is fully implemented. Electronic invoicing is mandatory for B2G relations between suppliers and public administrations. B2B e invoicing is still optional and private companies can use PDF invoices or decide whether to adopt electronic invoicing. However, as of January 1, 2026, a Qualified Electronic Signature (QES) or a Qualified Electronic Seal will be mandatory for PDF invoices in B2B and B2C transactions. So while companies can currently use PDF invoices, they will need a QES from January 1, 2026 issued to taxpayers by certified third-party provider to be considered compliant. Romania - E Invoicing Romania - B2B E Invoicing Mandatory from 1 July 2025. Singapore - E - Invoicing Mandatory E - Invoicing for new companies from 1st November 2025. E-Invoicing Journey - Singapore * 2018 - IMDA adopted Peppol as the standard for the nationwide e-invoicing initiative and became the first Peppol Authority outside of Europe. * 2019 - The network was launched with 11 Access Point providers. * 2020 - The Government public procurement was connected to Peppol, providing an additional channel for Government vendors to issue invoices to Government. * 2021 - IMDA rebranded Peppol to InvoiceNow in Singapore, drawing on the public’s familiarity with PayNow, the widely adopted e-payment system in Singapore. * 2022 - IMDA introduced additional document types – purchase order and invoice response, on the InvoiceNow network, aiming to further streamline the procure-to-pay process for businesses. * 2023 - The Government announced the plan to make InvoiceNow the default channel for public procurement in the next few years. * 2024 - IRAS announced the GST InvoiceNow Requirement, which requires GST-registered businesses to transmit invoice data to IRAS via the InvoiceNow network. The requirement will be implemented progressively, starting from November 2025. * 2025 - Progressively implementation of e invoicing starting from November 2025. Source - Singapore Gov Agency Slovakia - E invoicing Slovakia has had mandatory E - invoicing for B2G since 2022 and mandatory B2B e - Invoicing will commence from January 2027. Slovenia E - Invoicing * B2G - e invoicing has been mandatory in Slovenia since 1 January 2015. * B2B - e invoicing will be mandatory in Slovenia from 1 January 2028. South Africa - E-invoicing South Africa - E - Invoicing mandatory from 2028 with real-time reporting of transactions. Spain E Invoicing E Invoicing B2B - Businesses with total revenues of 8 million Euros or more a year will be required to comply with the mandate by July 2025 and other businesses a year later in 2026. (Now looks likely this will be delayed until 2027). UAE - E - Invoicing Mandatory E - Invoicing for all transactions from July 2026. Feb 26 Ministry of Finance Publishes E invoicing Guidelines. See Link UAE Electronic Invoicing Guidelines United Kingdom - E Invoicing Autumn Budget 2025 - UK E - Invoicing for B2B and B2G will be Mandatory from 1 April 2029. https://www.gov.uk/government/consultations/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector/outcome/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector-consultation-response#foreword

VAT and Online Market Places - Read our guide on online market places including what they are, UK Tax Authority (HMRC) rules and who accounts for VAT on goods traded. Intro duction I n addition to the sale of goods in the traditional way via shops, goods are now sold to a much greater extent through online market places or platforms such as Amazon. As such there are rules around how and who should account for VAT when the sale of goods is facilitated through the use of such platforms or market places. What is an Online Market Place HMRC's definition an online marketplace is a business using a website or mobile phone app (such as a marketplace, platform or portal) to handle the sale of goods to customers which meets all of the following conditions: It in any way sets the terms and conditions on how goods are supplied to the customer is involved in any way in authorising or facilitating customers’ payments is involved in the ordering or delivery of the goods A business will not be classed as an online marketplace if it only provides one of the following services: Processing of payments for the supply of the goods to the customer Listing or advertisement of goods Redirection or transferring of customers to other websites or mobile phone apps where goods are offered for sale, without any further involvement in any sale that might take place on that website or app UK Businesses Selling on Online Market Places UK businesses selling through online market place platforms must register for VAT where taxable sales exceed £90,000 and account for and pay the output VAT collected over to HMRC as part of their VAT return submission. The online market place business will be responsible for sharing the customers VAT registration number with the seller if the customer is a business customer. You can register for VAT online . Non UK Businesses (Overseas Seller) Selling on Online Market Places A n Overseas Seller as defined by HMRC is an overseas seller that sells goods stored in the UK to UK customers and do not have a business establishment in the UK. A business is established in the country where the functions of it's business’s central administration take place. That is where essential management decisions are made, Where your registered office is located and management meetings take place. You are also an overseas seller if you’re based outside: The UK and sell goods to customers in Great Britain (England, Scotland and Wales), then import them into Great Britain The UK and EU and sell goods to customers in Northern Ireland, then import them into Northern Ireland Goods Sold by an Overseas Seller (using an online market place) That are Outside the UK at the Point of Sale Where the consignment of goods are valued at £135 or less, the online market place will be responsible for charging the customer VAT and declaring this to HMRC. Therefore the online market place must be registered for VAT, understand the nature of the goods so that they can determine the correct VAT rate to apply and keep records of all sales. Where the sale of goods is to a UK business customer, the Online Market Place will not need to charge the customer VAT so long as the customer provides a VAT registration number and the online market place verifies the VAT number. The online market place can then write the words "Reverse Charge Applies Customer to Account for VAT to HMRC" on the invoice. The customer will then be responsible for declaring the VAT under the Reverse Charge Mechanism . Where the goods are supplied in Northern Ireland the business customer will be responsible for accounting for any VAT due. They may account for it using postponed VAT accounting or any other means of paying import VAT. Where the consignment of goods are valued at more than £135 , Normal VAT and customs rules will apply on importation of the goods into Great Britain from outside the UK or into Northern Ireland from outside the UK and EU. The overseas seller will remain liable for any import VAT and Customs Duty when the goods are first imported into the UK. Goods Sold by an Overseas Seller (using an online market place) That are in the UK at the Point of Sale Where goods are imported the overseas seller will remain liable for any import VAT and Customs Duty when the goods are first imported into the UK. Overseas sellers who are registered for VAT, can reclaim any import VAT they had to account for when the goods were first imported into the UK. When the goods are sold to the customer, the overseas seller will be considered to have made a zero-rated supply of the goods to the online marketplace, known as a ‘deemed supply’. The overseas seller does not have to issue invoices to the online marketplace for deemed supplies that are considered to be zero-rated. UK VAT will be charged at the point of sale. The online marketplace will be liable to account for the VAT on the sales made through its marketplace by a seller not established in the UK. Where the goods are located in Northern Ireland at the point of sale and sold to a customer in Northern Ireland, the online marketplace will be liable for the VAT where the seller is not established in the UK and EU. The seller remains liable for the VAT where the goods are for a business customer who gives them their VAT Registration Number. Goods Sold to UK VAT Registered Businesses The online marketplace should pass on all the details of the sale (which should include the VAT registration number of the business) to the seller on the marketplace. The seller must register for VAT if they are not already registered. They will be liable to account for the VAT on the sale. Checks Online Market Places Must Make Legislation allows HMRC to hold you as the operator of the online marketplace jointly and severally liable for unpaid VAT where: An overseas seller operating on the marketplace should have registered for UK VAT and has failed to do so The online market place knew or should have known that an overseas seller should be UK VAT registered Note: The on line market place can also be held jointly and severally liable if HMRC informed them that a seller operating on the marketplace is not meeting its VAT obligations. It’s The online market places responsibility to check when an overseas seller needs to be registered for UK VAT. If they fail to do this, they could be liable for any unpaid VAT. If it is believe that an overseas seller should be paying UK VAT, you should check: That they have a valid VAT Registration Number (VRN) The location of the seller The location of the goods that will be sold by the seller If the seller, or those directing the seller, have been removed from your online marketplace before How quickly the seller is able to fulfil orders from UK customers If there’s any information that the seller, HMRC or a third party gives you that might indicate dishonest conduct or failure to meet their VAT obligations You should request a VRN when you think a seller offering goods for sale on your marketplace should be registered for UK VAT. It’s up to you to validate the VRN of a seller operating on your marketplace within 10 days of receiving it. You can check a UK VAT number . Registrations are updated every day. Online Market Places and How VAT Works

HMRC Business Risk Reviews are an integral tool used by HMRC to ensure Large businesses are maintaining adequate and robust controls for Tax Reporting and compliance. "Take the heavy lifting out of your role search!" Business Risk Review - Guide on HMRC Business Risk Reviews Introduction The Business Risk Review plus (BRR+) is the primary mechanism through which HMRC assesses the tax compliance risk of the UK’s largest and most complex businesses. Under the "plus" model introduced in 2019, the review has shifted from a simple "Low Risk/Non-Low Risk" assessment to a more granular, four-tier rating system. Scope of the Review & Frequency The BRR+ is usually conducted by a Customer Compliance Manager (CCM). It applies to large businesses, meeting one or more of the following: UK Turnover: Over £200 million. Assets: Gross balance sheet assets over £2 billion. Complexity: Smaller businesses that HMRC deems high-risk or complex (e.g., multinational groups). The frequency of these reviews is determined by a company's current risk rating: Low Risk: Usually reviewed every 3 years. Moderate, Moderate-High, or High Risk: Reviewed annually. Risk Categories HMRC assigns one of the following ratings based on the review: Low - HMRC has high confidence in the business's systems and openness. Interaction is minimal. Moderate - Generally compliant but has some gaps in processes or occasional aggressive tax positions. Moderate-High - Significant concerns regarding governance or recurring errors. High - Frequent disputes, poor systems, or lack of transparency. This triggers intense HMRC scrutiny. Assessment Pillars HMRC evaluates the business across all applicable tax regimes including VAT using three standards Systems and Delivery - HMRC reviews your VAT processes and controls to determine if it is robust enough to deliver accurate VAT reporting. Resources - Is the tax team sufficiently staffed and skilled? Technology - Are accounting systems fit for purpose for the business's scale? Accuracy - Is there evidence of repeated basic errors or "failure to take reasonable care Internal Governance - This focuses on management accountability and compliance with statutory regimes. SAO Compliance: Adherence to Senior Accounting Officer (SAO) requirements. Tax Strategy: Is your tax strategy published and followed in practice Uncertain Tax Treatment (UTT): How you identify and notify HMRC of uncertain positions. Internal Policy on VAT Compliance - Basically the business's relationship with HMRC. Transparency: Do you disclose issues in real-time before filing Interpretation: Do you take aggressive positions that push the boundaries of legislation Collaboration: How quickly and accurately do you respond to HMRC queries Low Risk Checklist VAT Risk Matrix - Ensure there is an up to date VAT risk and control matrix that outlines all VAT Team, VAT operational, Finance operational risks and controls and who owns and operates them including frequency of testing the controls. Documented Processes - Ensure all VAT processes and workflows are written down and documented. Real-Time Disclosure - Discuss all complex transactions with HMRC before filing your VAT return. Audit Trail - Ensure there is a robust audit trail for all transactions and manual adjustments for VAT . Note: A "Low Risk" rating is not permanent. HMRC can withdraw it immediately if a serious breach occurs or if the business enters into a tax avoidance scheme.

Comprehensive guide on the VAT liability of private hire / taxi services provided to the general public including a look at the principal and agent operating models. Introduction The provision of taxi services to the public is chargeable at the standard rate of VAT 20%. Taxi services comprise of: Drivers who own or rent vehicles to provide taxi services to the public Companies that provide taxi services to the public by either using their own fleet of vericles or use drivers who operate on a sub contract basis. Drivers who own or rent vehicles to provide taxi services Drivers that use their own or rented vehicles to provide taxi services to the general public are doing so as self employed taxi drivers. Drivers must register for VAT where they they exceed or intend to exceed the VAT registration threshold of £85,000 Standard Rated VAT 20% VAT is applicable on these taxi services as follows: Taxi journeys provided to the public (including waiting time) Any additional charges for baggage Services provided to other taxi firms on a contract basis Note: Working for a taxi firm on an employed basis (as an employee) is not classed as being in business providing taxi services. The company employing the taxi driver(s) is providing taxi services for VAT purposes. Companies that provide taxi or private hire services Companies that provide taxi or private hire services to the general public using either employed or subcontracted drivers are providing vatable services and should charge 20% VAT. These services are either provided to customers who pay cash directly to the driver or to account holders who use private hire firms such as Addison Lee or UBER. Services that they provide where standard rated VAT 20% is applicable are as follows: Taxi or private hire journeys provided by the company to the general public (individuals or companies etc) by drivers employed by the company Taxi or private hire journeys provided to the general public (individuals or companies etc) using subcontracted drivers or companies Taxi Journeys provided by the Owner, Director, Partner to the general public (individuals or companies) using the companies vehicles or their own. Referral fees received from taxi drivers or firms for passing business to them Note: VAT should be applied to the full fare collected from the customer before any deductions made from amounts payable to subcontracted drivers or companies. (For example where you charge them for use of equipment such as radios, satnavs etc.) Also VAT invoices or receipts should be provided to customers who request or require one. UBER vs HMRC - Note Uber was assessed for almost £400M by HMRC in 2023 for VAT in relation to VAT which HMRC argues is underpaid for historical fare rides where VAT was not charged by UBER. UBER are challenging this assessment. See link to Tax Policy Associates Article. Exclusive report: HMRC pursuing Uber for another £386m of VAT – Tax Policy Associates Ltd . Also see BOLT case below in Dec 2023 which may help UBER's case when heard in 2024. BOLT vs HMRC - Note BOLT recently won a tax tribunal case in London where it argued that it should only pay VAT to HMRC on the margin (difference between what it receives and pays to drivers) based on the Tour Operators Margin Scheme. HMRC have since been granted the right to appeal the decision. March 2025 - UTT (upper tribunal) Bolt has successfully defended its case against HMRC and the UT has agreed with the FTT in that Bolt can use the TOMS for VAT on ride hailing services. May 2025 - HMRC - have paused collecting assessed VAT on the full Value of rides on its platform following the success of the bolt case above. Veezu and Delta Taxis - The Court of Appeal overturned the High Court’s earlier decision brought by UBER where it argued that VAT should be applicable to Taxi fares. This now means taxi firms in England and Wales – outside of London – will not be forced to apply VAT onto their fares. The ruling will not impact Uber, who will continue to charge VAT on fares, but will mean many smaller firms can continue to operate as they have previously. (Source City AM) UBER - July 2025 - Has lost its Supreme Court appeal on the above where it sought to overturn the above High Court decision that rival taxi firms outside of London do not have to charge 20% VAT on their rides. Business Structure of Companies that provide Taxi or Private Hire Services Principal or Agency Model where taxi or private hire firms use subcontracted drivers, they can either act in the capacity of Principal or as an agent to the drivers. Acting as Principal Where taxi or private hire firms provide services to the general public as principal using subcontracted drivers, the services are being provided by the firm itself and it must account to HMRC for VAT at 20% on the full fare charged to the customer. Acting as Agent Where taxi or private hire firms provide services to the general public acting as agent for self employed drivers or other companies, it means the actual supply of transport services is between the self employed driver and the customer riding the taxi. The Taxi firm acting as agent will normally: Inform the drivers of customer bookings and location Collect cash on behalf of the drivers where bookings are made by account holders. Invoice the drivers for their agency fee and charges for car and radio hire plus 20% VAT Invoice account holder customers (including 20% VAT) for an admin charge which should be shown as a separate line on the total invoice for transportation services provided Note: VAT should only be billed and collected from account holders where the driver is registered for VAT Using the Principal Model and the Agency Model A company can use both the principal model and agency model for account holders and cash customers respectively provided there are properly drafted contractual agreements and terms with drivers and companies and there are genuine differences between the two sides of the business. Taxi Associations Taxi Associations are companies that are set up by a group(s) of taxi drivers to: Facilitate the allocation of customer orders among its members provide a central control room for handling and allocating jobs provide standard equipment such as radios, satnavs etc to members Taxi Associations must register for VAT where their services billed exceed the VAT Registration threshold of £85,000 -Contains public sector information licensed under the Open Government Licence v3.0. Taxi Services and VAT

VAT on Catering - Comprehensive guide on how VAT is applied to food and catering, including whether the standard rate or zero rate of VAT applies to hot vs cold Food. Introduction Most food products are zero rated but food supplied in the course of catering is normally Standard Rated. Catering - Standard Rated Food and drink served in a Restaurant Supplies of food and drink at events such as conferences, parties, weddings and similar gatherings Cooked and ready to eat meals delivered Supply of cooking at a customers home for parties, post wedding meals etc Supply of catering under a catering contract Packed Lunches supplied for trips or other events Meals that form part of a package for hotel or bed and breakfast accommodation Service charges added to bills in restaurants Supplies of food, confectionery, drinks from vending machines in a restaurant Supplies of food and drink on a train, coach, plane, ship for journeys within the UK Supplies of food and drink to staff and visitors at clinics, hospitals and other care facilities Hot takeaway food that has been heated to enable consumption such as fish and chips, Chinese takeaways, Indian takeaways, kebabs, Pizzas, pies, rolls, sausage rolls, pasties, hamburgers, hot dogs, baked potatoes with hot or cold filling, soup, tea, coffee, hot chocolate and other hot drinks. Hot takeaway food that's been heated to order such as toasted bread, sandwiches, panini, teacakes Hot takeaway food kept hot after cooking such as freshly baked croissants, pretzels, patties, pasties, hamburgers, Kebabs, hot dogs etc Catering - Zero Rated Supply of food that customers have to prepare for themselves Sandwiches and other food and drink (that is normally zero rated) taken to buildings for sale where the seller has no contract of supply with the firms. Food and drink provided on trains, planes and ships where the destination is outside the UK Cold takeaway (consumed off premises) food (not crisp, confectionery etc that is ordinarily standard rated Catering - Exempt Supply of food and drinks by an educational institution in the canteen to it students Supply of food and drinks in a school tuck shop Supply of food and drinks by a hospital, clinic, care home to its patients Catering - Outside the Scope of VAT Tips in restaurants Who Must Account to HMRC For Output VAT Charged The Owner of the catering facilities must account for VAT on sales of food and drink in its restaurants and on supplies of hot food The catering contractor operating on the owners premises as principal should account for VAT on any food and drink sold in the catering facility and also any fee invoices issued to the owner of the facility and on any subsidies provided. The owner of a catering facility where they have an agent that operates the canteen or restaurant on their behalf should account for VAT on food and drinks and any hot takeaway food sold within its facility. Under this arrangement a supplier can either invoice the principal directly for goods supplied to the agent for sale in the canteen allowing them to recover the VAT or issue the invoice to the agent who can then recharge these on to the principal with VAT and account for it on their return. Contractors who sell goods to both the catering establishment owner and also supply goods in the restaurant. In this case standard rated VAT will be payable by the agent on food and drink sold to the owner and on the fees charged by the agent for running the canteen. -Contains public sector information licensed under the Open Government Licence v3.0. Food and Catering - VAT Guide for Hot and Cold Food

Comprehnsive guide for the different VAT rates applicable to various goods and services in the UK, including Health, Transport, Land & Buildings, Education, Charities etc. VAT Rates For Goods & Services Food and Drink Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include: catering alcoholic drinks confectionery crisps and savoury snacks hot food sports drinks hot takeaways ice cream soft drinks and mineral water Restaurants must always charge VAT on everything eaten either on their premises or in communal areas designated for their customers to use, such as shared tables in a shopping centre or airport food courts. In addition, restaurants and takeaway vendors must charge VAT on all hot takeaways and home deliveries, but do not need to charge VAT on cold takeaway food unless it’s to be eaten in a designated area. Animals and animal food Supplies of live animals that are zero-rated You can zero rate the sale, hire or loan or supply of a part interest (a share) of a live animal provided it’s of a kind generally used in the UK, or yielding or producing food for human consumption. Animal includes bird, fish, crustacean and mollusc. Examples of Zero Rated Animals are: meat animals dairy animals poultry (except ornamental breeds), including those for egg production, honey bees fish (except ornamental breeds and coarse fish), including those for production of edible roes Animals that are standard-rated Examples of standard-rated animals are: bumble bees ornamental birds and fish racing pigeons horses Live kangaroos Pets Animals that will be kept as pets can be zero-rated only if they are of a kind that is normally used for human food production. For example, rabbits, other than ornamental breeds, are always zero-rated. Animals kept for non-food purposes Animals kept for non-food purposes can be zero-rated if they are of a kind normally producing food for human consumption. Sheep kept mainly for their wool, or bulls used for breeding are zero-rated. Birds Most breeds of chicken are zero-rated, as are game birds and ostriches. Ornamental breeds of birds are standard-rated. The following breeds of ducks, geese and turkeys are zero-rated: Type of fowl Breed Ducks - Aylesbury, Campbell (Khaki Campbell), Indian Runner, Muscovy, Pekin and derivatives and crossbreeds of these Geese - Brecon Buff, Chinese Commercial, Embdem, Roman, Toulouse and derivatives and crossbreeds of these Turkeys - Beltsville White, British White, Broadbreasted White, Bronze (Broadbreasted Bronze), Norfolk Black and derivatives and crossbreeds of these Fish Freshwater fish - Eels, salmon and trout and others recognised as food for human consumption are zero rated. Bream, perch, pike, carp and tench are standard rated. Shellfish - Oysters, mussels, whelks are zero rated while non food species are standard rated Fish for aquaria -All supplies are standard rated Fish used as bait - Fish of a kind, and fit for, human consumption are zero rated and all other supplies are standard rated. Ornamental fish - for example koi carp Agricultural and horticultural crops Crops covered by the relief All crops that are specifically grown to produce food of a kind for human consumption or animal feeding stuffs are zero-rated. The zero rate also applies to seeds, seedlings, crowns, spores, tubers and bulbs of edible vegetables and fruit. What’s not covered by the relief Any crop that generally produces items that are not fed to humans or animals is always standard-rated. Plants that are primarily grown for their ornamental effect (such as ornamental nursery stock including trees, shrubs, herbaceous plants, alpines and pot plants) are standard-rated. Plants, seeds and fruit of a kind used for the production of perfumes, pharmaceutical products, insecticides, fungicides and other non-food uses are standard-rated. Some examples of plants that are standard-rated are: Evening primrose, because this is grown for the extraction of its oil Tulips and Hyacinths, because these are grown and sold for ornamental purposes Norfolk reed, because this is grown for thatching material Sport, leisure, culture and antiques Betting and gaming — including pool betting and games of chance is Exempt from VAT Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT Lottery ticket sales is Exempt from VAT Online lottery games is exempt from VAT Retailer commission on lottery ticket sales is Exempt from VAT Culture Admission charges by public authorities or eligible cultural bodies to certain cultural events such as visits to museums, art exhibitions, zoos and performances is Exempt from VAT Antiques Antiques, works of art or similar (as assets of historic houses) sold by private treaty to public collections are exempt from VAT Antiques, works of art or similar (as assets of historic houses) used to settle a tax or estate duty debt with HMRC again are exempt from VAT Health, education, welfare and charities Charities Admission charges by charities are Exempt from VAT Advertising services for charities VAT are zero rated Certain goods sold at charitable fundraising events are zero rated Charitable fundraising events are Exempt from VAT Charity shops — selling donated goods is zero rated for VAT Construction and sale of new buildings for a relevant charitable purpose are zero rated for VAT Energy-saving materials permanently installed in dwellings and buildings used for a relevant residential purpose providing the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT) 5% reduced rate VAT applies. Energy-saving materials — supply only — are Standard-Rated (20%) Sponsored charitable events are Exempt from VAT. Voluntary donations to charities are outside the scope of VAT Welfare Building services for disabled people are zero rated for VAT Burial or cremation of dead people, or burial at sea is Exempt from VAT Mobility aids for the elderly, 5% reduced rate VAT applies Equipment for blind or partially sighted people is zero rated Equipment for disabled people is zero rated for VAT Funeral plans written under contracts of insurance are Exempt from VAT Smoking cessation products — nicotine patches and gum, 5% reduced rate VAT applies Welfare services provided by charities at significantly below cost are Outside the scope of VAT Magnetic tape adapted for recording speech for blind people together with apparatus for making and playing the adapted tape and certain low vision aids are zero rated. Health Care or medical treatment provided by a qualifying institution like a hospital, hospice or nursing home are Exempt Dispensing of prescriptions by a registered pharmacist is zero rated for VAT Health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals is Exempt from VAT Incontinence products are zero rated. Maternity pads are zero rated Sanitary protection products are zero rated Low vision aids are zero rated Education Education and vocational training provided by an eligible body other than a ‘private school’. Goods or services closely connected to the education provided by an eligible body like a school, college or university is Exempt from VAT. VAT Notice 701/30 Building and construction Substantial reconstructions to protected buildings that are buildings used as a dwelling, for a relevant residential purpose or for a relevant charitable purpose is zero rated VAT Notice 708 The installation of a bathroom or lavatory, constructing ramps and widening doorways or passageways for disabled people in their own home is zero rated Building services for disabled people Construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose is zero rated. VAT Notice 708 Construction and first freehold or long leasehold sale of a new building for relevant residential purposes is zero rated. VAT Notice 708 Construction and first freehold or long leasehold sale of new domestic buildings is zero rated. VAT Notice 708 Converting existing premises by increasing the number of dwellings within the building, 5% VAT applies. VAT Notice 708 Renovating a dwelling that has been empty for at least 2 years 5% VAT applies. VAT Notice 708 First freehold or long leasehold sale of a commercial building converted into a dwelling or dwellings is zero rated. VAT Notice 708 First freehold or long leasehold sale of buildings converted for relevant residential purposes is zero rated. VAT Notice 708 First freehold or long leasehold sale of buildings converted for relevant charitable purposes is zero rated. VAT Notice 708 Land and property Garages or parking spaces let together with dwellings (under short hold tenancy agreements) for permanent residential use are Exempt from VAT. — VAT Notice 742 Parking — grant, or licence, to occupy land on which incidental parking takes place is Exempt from VAT. VAT Notice 742 Property, land and buildings — grant, or licence, to occupy land or buildings is Exempt from VAT. VAT Notice 742 Sale or long lease of a new dwelling with garage or parking space is zero rated for VAT. VAT Notice 708 Transport, freight, travel and vehicles Transport Aircraft repair and maintenance is zero rated for VAT. VAT Notice 744C Travel Houseboat moorings are Exempt from VAT. VAT Notice 742 Parking spaces or garages supplied with houseboat moorings are Exempt from VAT. VAT Notice 742 Passenger transport in a vehicle, boat or aircraft that carries not less than 10 passengers is zero rated for VAT. VAT Notice 744A Tolls for bridges, tunnels and roads operated by public authorities is Outside the scope of VAT. Privately-operated tolls for bridges, tunnels and roads are standard-rated — VAT Notice 700 Freight Freight transport to or from a place outside the UK is zero rated for VAT. Domestic freight transport is standard-rated, unless it is the domestic leg of freight transport between the UK and another country in which it is zero rated. — VAT Notice 744B Freight containers — sale, lease or hire to a place outside the UK and the EU is zero rated. VAT Notice 703/1 International freight transport that takes place in the UK and its territorial waters is zero rated. VAT Notice 744B Vehicles Aircraft repair and maintenance is zero rated. VAT Notice 744C Airships — sale or charter is zero rated. VAT Notice 744C Caravans (more than 7 metres long or more than 2.55 metres wide) is zero rated or 5%. Taxing holiday caravans Civil aeroplanes — sale or charter is zero rated for VAT. Gliders — sale or charter — are standard-rated as are hot air balloons — VAT Notice 744C Helicopters — sale or charter is zero rated for VAT. VAT Notice 744C Houseboats — sale or let out on hire is zero rated for VAT, But holiday accommodation let in a moored houseboat is standard-rated — VAT Notice 701/20 Military aeroplanes — sale or charter is zero rated for VAT. VAT Notice 744C Ship repairs and maintenance is zero rated for VAT. VAT Notice 744C Shipbuilding — 15 tons or over gross tonnage is zero rated for VAT. VAT Notice 744C Printing, postage, publications — books, magazines and newspapers Printing Brochures is zero rated for VAT. VAT Notice 701/10 Leaflets is zero rated for VAT. VAT Notice 701/10 Pamphlets is zero rated for VAT. VAT Notice 701/10 Postage Direct-mail postal services meeting all the conditions of VAT Notice 700/24 3.2 and 3.3 are Outside the scope of VAT. VAT Notice 700/24 Postage, packing and delivery within the UK included in the sales contract but charged for separately, for example, mail order The same rate as the goods being delivered or posted Postage, packing and delivery within the UK charged as an optional extra is always standard-rated — VAT Notice 700/24 Public postal services provided by the Royal Mail under a universal service obligation are Exempt from VAT. Standard Royal Mail first and second class services for example Other postal services that are not subject to a universal service obligation are Standard-Rated (20%) Supplies that are not subject to regulation Publications Books are zero rated for VAT. VAT Notice 701/10 Children’s painting and picture books are zero rated for VAT. VAT Notice 701/10 Maps and charts are zero rated for VAT. VAT Notice 701/10 Magazines are zero rated for VAT. VAT Notice 701/10 Newspapers are zero rated for VAT. VAT Notice 701/10 Printed or copied music are zero rated for VAT. VAT Notice 701/10 Publications are zero rated for VAT. Some items are standard-rated such as exercise books, letterheads, posters — VAT Notice 701/10 Clothing and footwear, protective and safety equipment Clothing and footwear Babywear is zero rated for VAT. VAT Notice 714 Children’s clothes and footwear is zero rated for VAT. VAT Notice 714 Protective and safety equipment Carrycots with restraint straps, 5% VAT applies. VAT Notice 701/23 Children’s car seats, booster seats and booster cushions , 5% VAT applies. VAT Notice 701/23 Children’s safety seats with bare wheeled framework, 5% VAT applies. Prams and pushchairs are standard-rated (20%) — VAT Notice 701/23 Cycle helmets — CE marked are zero rated for VAT. VAT Notice 701/23 Motorcycle helmets that meet safety standards are zero rated for VAT. VAT Notice 701/23 Protective boots and helmets for industrial use are zero rated for VAT. VAT Notice 701/23 Open Government Licence v3.0