VAT Blog
Latest news, thoughts and articles from the world of VAT.
Backdated VAT claims by HMRC
Q: Hi, My wife has a small part time slimming business selling meal replacement packs and has traded for several years. She registered for VAT voluntarily as there is no VAT on the packs and her turnover was below the registration limit. She has recently received a...
Buying VAT-free properties for conversion
I’ve received a lot of queries over recent months from people buying pubs, either to convert for their own private use as their main dwelling, or to use for a mixture of business and private purposes. Many queries are about buying VAT-free properties for conversion....
VAT on small publisher sales via Amazon and Voluntary VAT registration
Q: Hello Marie As Amazon collects and pays over the VAT on ebooks, should small publishers who are below the VAT registration threshold register for VAT voluntarily, as they should be able to recover the input VAT on their purchases. Is this arrangement some kind of...
VAT, Property and Off the shelf company
Q: Hi, Could anyone help... a client owns a small office building, which it purchased 7 years ago. The client is now considering selling the building to a registered dentist and is looking to structure the sale in a VAT efficient manner. The client has asked to...
Vat On estate agency services supplied from the Uk to a Czech property developer.
Q: Hi, We supply estate agent services from the UK to a Czech property developer and charge a fee to them. Am I correct in assuming that our invoices to them should show zero rated Vat and that they then have to pay Czech Vat on the transaction? Do we also have to...
VAT on intercompany recharges for services EU and Non-EU
Q: Hi all The company I work for has recently opened service centres in France and Turkey. We are wanting to book customer orders onto the UK entity, and then use the other centres to perform the work. It has been suggested that we recharge the costs of these entities...
Demand for Immediate Payment- NO PREVIOUS NOTICE
Q: Hi Hoping someone can give some VAT advice and how to deal with the HMRC. This week I received a Demand for Immediate payment. Previous to this I had no communicationwhatsoever. Indeed the notice came in unbranded HMRC envelope, on flimsy HMRC paper. It did not say...
VAT in the NHS
Q: I have a question my trust does lab testing for other hospitals in Ireland and Portugal. As an NHS organisation we do not charge VAT. What is the impact of VAT to the other no Uk hospital and my trust? A: Hi It’s a bit of a big subject really but in principle, the...
Difference Between Business & Employee Entertainment
Q: HMRC guidance on employee entertainment states "employee entertainment........is considered to be for business purposes and so you can claim back the VAT.......however you cannot claim back the VAT in either of these circumstances: When non-employees are included...
VAT and Salary Sacrifices
VAT and salary sacrifices: background In this blog, I'll be explaining the new rules about VAT and salary sacrifices that apply to employers who run a salary sacrifice remuneration scheme. HMRC has confirmed that from January 2012, there will be a major change in the...
e-commerce VAT, similar to drop shipping but all UK based.
Q: Hi Here's hoping you can help, I have asked HMRC and read the appropriate sections but unfortunately I don't understand the accountancy language, I have asked a couple of accountants and read through these forums but to no avail. We own a website which will sell...
UK Service, EU Invoice
Q: Hi I Know this is very similar to Millijo's query, so apologies for being really dense. One of my clients is a UK based company who provide services, to one particular client, based in the UK - XXX (UK) Ltd and have to invoice direct to their HQ in Finland. Should...
VAT on holiday lets?
Q: I have a property which I have owned for about 10 years, initially it was used as an office and I had an option to tax on the property. I sold the business that was run from the office 2 years ago and converted the property to residential use. I have been using...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Making tax digital for VAT
I recently saw an article reporting that HMRC has not yet prosectured any businesses who trade on Ebay, Amazon and other online platforms for VAT avoidance. I don't know whether the report is true, but if so, I can only assume that part of the reason is the...
The VAT invoice
Quick blog this week, but about a very important issue that affects anybody submitting a VAT return and the humble document otherwise known as the VAT invoice. We all know that HMRC is constantly looking for ways to increase the VAT revenue. Even if you think you do...
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...