VAT Blog
Latest news, thoughts and articles from the world of VAT.
I want to sell machinery from Germany
Q: Hello I want to sell machinery from Germany to non VAT registered customers in the UK. The machinery will have been subject to German VAT (USt I think) at 19% So to my way of thinking the customer will not have to pay VAT when it arrives in the UK. Am I correct?...
The 20% VAT rate and small businesses
Small businesses getting it in the neck! The news about the increase of the standard rate of VAT is a real worry for many small business owners and based on the feedback I’ve had here on www.vatexchange.co.uk and from accountants, it really could be the last straw for...
Splitting operation – voluntarily vat registered
Q: I am voluntarily vat registered - substantially below vat threshold. I trade with general public and B2B alike. HMGov has just taken some of my income away by abolishing Home Information Packs - so income set to drop even further! Remaining activity is energy...
EC VAT help needed
Q: Hello, We have a UK startup Ltd, developing computer software and we are not registered for VAT. Our first customer is from an EC member country (they have a valid EC VAT number). Looks like we'll not reach the 70k threshold needed for VAT registration in the near...
Revoking Options to Tax
Blogs are normally for talking about stuff and not technical information. But ever since I set up www.vatexchange.co.uk, I keep blogging about how important it is to plan ahead for VAT with any property transactions and sometimes I think it's a useful way of reminding...
council and tax evasion?
Q: Hello Can anybody help me, As my house was under compulsory purchase order the council asked me if I wanted to buy one property owned by them. I accepted. The property needed refurbishment. Actual work took 12 weeks approx. but I was able to move in only 13 months...
Why every accountant needs to know about VAT Notice 742A
Last month HMRC issued an updated version of VAT Notice 742A: Opting to Tax Land and Buildings here http://tinyurl.com/ckzyhk. It contains HMRC's guidance about the law relating to the option to tax, as well as advice on various practical issues, such as submitting...
Vat on New Build
Q: HiAs a subcontractor, can I claim the vat back on materials I use on a vat exempt new build site Declan A: HI Declan As with all these things it depends on various factors. First, I presume that by “VAT exempt” you mean VAT zero-rated? I’m sorry to be pedantic but...
VAT Notice 742A: Opting to Tax Land and Buildings June 2010: List of Contents
VAT Notice 742A: Opting to Tax Land and Buildings June 2010 Edition Contents Section 1: Introduction (p2) Section 2: The Scope of an Option to Tax (p4) Section 3: Supplies not affected by an Option to Tax (p8) Section 4: How to Opt to Tax (p16) Section 5: Permission...
Small Businesses: Dealing with the New 20% VAT Rate and Staying Competitive
I've already had queries from small business owners who are concerned about passing on the VAT rate rise AND stay competitive in an already difficult trading environment, especially in the face of competitors who aren't registered for VAT. This will affect many small...
Inter Company recharges
Q: Hi My understanding is that inter company services (eg consultancy or management advice) from a business in one EU state to its branch in another are subject to reverse charge by the recipient branch. However I have stumbled across the FCE Bank ruling, which states...
VAT charged retrospectively
Q: Hope someone can advise? We have received an invoice for rent for a period, 3 years ago, when our then landlord was not yet registered for VAT. Can he charge VAT for this period? A: A business can only charge VAT for supplies made when it is registered for VAT, so...
Hote billbacks; Charity PPC Ads; Staff Vouchers & Sailaway Boat Scheme
April 2010 Advocat-General Opinion in Astra-Zeneca ECJ case AG agrees with HMRC that there is a VAT liability in case relating to vouchers given to staff as part of remuneration packages. Still awaiting final decision of the ECJ. 21 May 2010 Hotel Billback for...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
VAT and non-residential conversions
I'm very pleased to confirm that my latest e-book: VAT for SME residential property developers is now available. For just £19, the book was written with new and SME residential developers in mind; whether it's your first development or you've done several over the...
BRAND NEW: e-book about VAT for residential property developers now available!
How to save VAT, maximize profits and manage the VAT process on residential property development For new and experienced developers, contractors and professional advisers The ebook is all about the practical side of VAT and residential property development for...
Building materials: 5 important issues for developers and contractors
I'm currently working on the final draft of my new book for residential property developers and contractors. It includes a FAQ chapter which is primarily devoted to "building materials"; from identifying whether goods fall into the category and when developers can...