VAT Blog
Latest news, thoughts and articles from the world of VAT.
VAT and Membership Subscriptions
Q: Hi, We sell a membership for about £40 a year, inc VAT. The service allows the members to receive discounts. We also send them a book (worth £20) and 4 magazines a year (worth in total £10), we do not currently charge them an additional amount for these extra...
VAT and Online Ad sales revenue
Q: I am in the process of forecasting for a start up business. This business will generate a significant proportion of its income from online advertising revenue. These adverts will be provided by an intermediary AD sales agency operating from the UK. I am struggling...
Avoiding VAT When Converting Commercial Property to Residential
Q: Hi, Am considering buying a commercial property that has VAT payable but want to convert to residential immediately. I was told that it is possible to avoid the VAT if the property is converted within a set timescale of two years or similar. Can anybody verify this...
What VAT rate applies to mobile messaging subscriptions?
Q: Hi, For private customers' purchases of mobile messaging (i.e. electronic communication) services, what VAT rate should apply, in case that the sale regards: - A sale offered by a charity - The product contents is educational (or some other one) - Otherwise (i.e....
Complex VAT question: How handle VAT for e-wallet?
Q: Hi, I am working with an international, UK-Ltd. company that will provide an e-wallet kind of functionality to its customers (normally corporate customers), for mobile messaging services, that are paid by card, or by the cell phone bill (using "premium SMS"...
Reconciling VAT on Discounted Orders
Q: Say I have the following order (all prices VAT-inclusive): product1 €100 (vat standard) product2 €80 (vat reduced) product3 €70 (vat zero) The company wants to offer a €10 discount. The final price will be €240. According to VAT rules, how much standard VAT should...
Transfer of liability of VAT debts
Q: As a sole trader I have incurred VAT debts which have still to be finally assessed dating from 2004 to present. No legal action has started but Debt Management Unit have tried to contact me. I could probably repay over an extended period of several years but given...
Intercompany VAT
Q: Hi Marie I have a parent and a sub, the parent pays for most of the transactions for the sub, including salaries, petrol, mot's etc, these costs need to be charged to the sub via a sales invoice but does VAT have to be charged on everything? I'm not sure about...
VAT to EU non-profit organisations
Q: My company is supplying some services to a Finnish non-profit organisation which is a private research instititute which has been in existence for many years. In Finland the VAT number is derived simply from the business registration number (how joined up!) but...
VAT on global sales
Q: I am about to start a new business (this could be a new UK Ltd Co). I will be selling subscriptions to a specialist newsletter which will be published and distributed digitally and globally, to individuals (as apposed to companies). As this is digital rather than...
Vat on invoices before receiving Vat No:
Q: Newbie to site please be gentle!!.. My problem is that I have just registered a newco, and I will be over the threshold in the second month, and I will be invoicing aprox 40k in the first 3 weeks, all customers are vat registered. My question is: If I say invoice a...
VAT position for my Online Clinic
Q: Hello there, I am trying to find out what the VAT position is for an Internet Private Clinic that I operate with in the UK. The clinic allows patients to complete a thorough online health assessment for a given health condition. We then have a number of UK...
exceeding the VAT threshold
Q: Hello. I have just set up my own ltd company. I will be doing consultancy work through the company. Separately I will be doing some contracting working directly for companies as an employee. Two questions: I dont expect to exceed the VAT threshold and therefore...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Customers to pay VAT on construction services?
One of the most recent announcements from HMRC has been a consultation about SIGNIFICANT changes to the CIS and VAT rules for contractors. The primary aim is to reduce income tax, PAYE and VAT avoidance in the construction industry. And one of them includes the...
VAT FOR DIY RESIDENTIAL PROPERTY DEVELOPERS
New e-book now available VAT for DIY residential property developers How to save VAT on self-builds, conversions and renovations If you're planning your own DIY property developments for personal or family use, then you need my new e-book. It explains when you can...
2017 Budget and new VAT Flat Rate Scheme rules
As usual, the 2017 Budget didn't contain much about VAT, although it did include some small but significant changes designed to counter avoidance in specific business sectors. I'm sure you've all had lots of information from your accountants and other tax advisers....