VAT Blog
Latest news, thoughts and articles from the world of VAT.
Crossing the VAT Rubicon
28 days and counting! There are now just 28 days and only two full working weeks until the most significant rise in UK VAT history. And only one week if you’re one of those businesses who closes up shop before Christmas Eve. That’s not a lot of working days to make...
VAT Refund on Newbuild Construction
Q: Hi I'm hoping you'll be able to provide me with a bit of advice on re-claiming VAT on materials used in constructing a newbuild property. It's a little bit of a saga but please bear with me. In 1992 my husband and I bought a plot of land with outline planning...
US training & software services company delivering in London UK
Q: Hi, I was in a discussion last night about UK VAT, which I know nothing about, and I was looking for guidance. We are a brand new US registered company and have just closed a deal for a UK university to license our software to use in London. Do we charge them VAT?...
Education services in EU
Q: I provide education services in the UK and I am not VAT registered because my annual income does not go over the threshold. I have been offered a chance to teach in other EU countries. I understand that education services are treated as VATable in the country of...
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...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Why is VAT never neutral?
One of the most frustrating things about VAT is that it's not neutral. So what does that mean and why is VAT never neutral? Compared with company tax or income tax, or the "direct" taxes; VAT operates in a different way. For example, if you own a company then you'll...
It’s all about serviced accommodation
I've been out and about talking to a lot of property developers and investors recently. I've been told that the "hot" subject in property (and presumably where the money is) is in serviced accommodation, so I've been thinking about how it fits into the world of VAT...
Deposits, stakeholders, agents and all that…..
We're all used to paying deposits, whether you're buying a car, reserving a hotel room or leasing a house, chances are you'll be paying a decent size chunk of the price up front and often before the transaction is completed. Deposits are usually one of two things:...