VAT Blog
Latest news, thoughts and articles from the world of VAT.
Intercompany recharges
Q: Dear All, Does anyone know if Vat is applicable on inter company recharges between the UK parent company and a subsidiary in the US? Just to confirm, inter company recharges from one EU Country to another are subject to Vat using the reverse charge rule. Is that...
Twelve Important VAT Rate Change Facts
1. The important date is 4 January 2011! 2. The new VAT fraction will be 1/6. 3. Check out the new VAT rates for businesses using the Flat Rate Scheme. 4. Take advantage of the change of rate supply rules for supplies spanning the rate change. 5. Consider pre-payments...
US Based company needs advice
Q: I am a small business based in the U.S. We are offering procurement services for a global company. What we need to do is setup partnerships/reseller agreements with local UK training companies. Is there any way we can pass on the VAT to our client without having to...
Spliting vatable and non vatable sales when I have total sales and total vat amounts.
Q: Hi Folks, I have "Z" totals from a till at the end of each day but all is shows is the total sales, total vat and gross but not all the sales are inclusive of vat. Is there any way of spliting the vat inclusive sales from the exclusive sales, apart from doing it a...
Agency and principle
Q: Hi I'm new to the forum so I hope my question hasn't been asked before. My query relates to the raising of VAT invoices with regard to an agent/principle relationship. My understanding from notice 700 is that where an agent (in this case a music agent) is acting as...
OMBs and Property Purchases
I regularly receive queries about owner managed businesses and property purchases. They cover a wide range of situations but generally cover two main subjects. The first is whether the VAT on the purchase and other costs can be recovered; and second whether the VAT...
Shared Ownership – zero rated
Q: Hello I know the first sale of a shared ownership property is treated as zero rated income and any sale after that is exempt - if you have 'person constructing' or 'person converting' status. We are purchasing properties (previously occupied as a single occupancy...
INSTALLED GOODS
Q: Marie I am sorry to hear of your bereavement, and send my sincere condolences. Thank you very much for your answer regarding the installed goods simplified procedure. Could I please ask one more question re installed goods? I understand the place of supply for...
EC SALES – INTRASTAT
Q: Hi All, I have a question which is proberly easy to resolve, but have not come across this scenario before, so not sure how to account for it. We are based in the UK and have sold goods to a customer who is Norway, but they have requested the goods to be shipped to...
VAT do I pass on zero rate for print?
Q: I have a quick VAT question..... Im a graphic designer and buy print for my clients. Some print items are zero rated... the question is when I invoice the print cost plus a mark up on to my client I keep the print cost as 0% and any other costs (Design etc) at the...
Not Registered For VAT
Q: I have paid some invoices which included VAT relating to materials and labour costs to my builder who is registered with Companies House. Recently I have been informed by the builder that they are not registered for VAT (I assume they do not need to be registered...
The Not So Simple Standard Partial Exemption Method: Part One
Part One: What’s all the fuss about? Last year I went on a bit of a rant about HMRC’s decision to pursue Garsington Opera Company about their application of the standard partial exemption method. This is, of course, the fall back method for all partly exempt...
Place of Supply of Services
Place of Supply of Services What is the Place of Supply? The “Place of Supply” is the term that we use in VAT to determine in which country the VAT liability arises. Supplies of goods or services that take place in the UK are liable to UK VAT. If you are selling...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Single and multiple supplies
I recently took part in a webinar about the subject of single and multiple supplies. My co-presenter was the very accomplished solicitor Chris Bates from Norton Rose Fulbright, who discussed recent caselaw about the subject, while my job was to discuss some of the...
Serviced accommodation
Over recent months, I've had more and more queries about VAT and serviced accommodation, asking whether it's possible to reduce the VAT liability of the income by various means. Unfortunately, it's very difficult to do this. Serviced accommodation is regarded as...
Not another VAT newsletter February 2018
Affiliation fees and advanced learner loans HMRC has withdrawn the concession that allowed affiliation fees for sports clubs to be VAT exempt to be exempt from 1 April 2018: see Revenue & Customs Business Brief 01/2018. HMRC has also confirmed that the receipt...