VAT Blog
Latest news, thoughts and articles from the world of VAT.
Retail Pricing
Q: My University runs a Leisure Centre that is not open to the general public. Instead it offers memberships to staff, students, selected businesses & local community groups. We believe that the staff & student memberships are exempt from VAT and the other...
Psychologists, Cross-border Services, Scottish Equitable and VAT Notes No2/2009
HMRC has issued R&C Brief 43/09 which explains that medical services provided by practitioner psychologists are exempt from 1 July 2009. Further information about the changes to the VAT treatment of cross border supplies of services from 2010 was issued on 22...
how long for a VAT number?
Q: How long does it normally take for a VAT number to be issued once you apply for registration? Also, is the VAT number registered to me, the individual, on the form or the limited company I am a director of? ie. which is liable for payment of VAT me personally or...
Rank ruling, revised Default Interest guidance and Estonian VAT rate rises
HMRC has issued VAT Information Sheet 10/09 about the increase in the VAT rate in Estonia. HMRC has issued a revised version of VAT Notice 700/43: Default Interest which contains the revised rules about how and when default interest is charged. The High Court has...
VAT liability when payment is international
Q: Can anyone help? We are a training company who is part of a large world wide group that is spread throughout the world by franchise. Recently our Italian colleagues have set up a deal with a company where we're delivering training across Europe. The training is...
New bank account details for VAT payments
The bank account to be used for paying VAT directly to HMRC by BACS, CHAPS and Internet/Telephone banking will change with effect from 8 July 2009. Further details can be found here http://www.hmrc.gov.uk/payinghmrc/vat-payt.htm on the HMRC website.
International services query?
Q: Hi Marie, I have a VAT registered business that has started to do consultancy work for a number of business based abroad. Having read numerous long HMRC documents I believe the current recording of transactions should be as follows: 1) Services supplied to EC...
Private use of cars, Relevant residential and charitable buildings, revised Finance Notice
VAT Information Sheet 07/09 sets out the new “average banding” system for private use of cars by car dealers, manufacturers, car hire companies to bring the VAT rules into line with the direct tax rules from 1 May 2009. Revised VAT Notice 701/49: Finance which...
Paying VAT on invoice not addressed to us
Q: We have received an invoice from a solicitor for some work done for us and another company. Their client is the other company but we agreed to pay for the work. The solicitors have invoiced the other company but have said it is ok for us to pay it and use the...
Collecting VAT invoices retrospectively
Q: I am a sole trader who unwittingly exceeded the threshold in June 2008 ( I thought that the threshold ran from tax year to tax year not 12 months consecutively). I have been told to register from June 2008. I need to know can I send retrospective VAT invoices to...
Reverse Charge on mobile phones and computer chips
HMRC has issued Revenue & Customs Brief 34/09 (18 June 2009) which confirms that the reverse charge which currently applies to sales of mobile phones and computer chips has been extended until April 2011. The brief can be found here...
Revised Investment Gold Coins Notice
HMRC has issued a new version of VAT Notice 701/21A which deals with the VAT liability of the supply of investment gold coins. The new notice can be found here https://www.gov.uk/guidance/investment-gold-coins-and-vat-notice-70121a on the HMRC website.
Why can’t you give a simple answer???
Someone asked me recently why I can never give a simple one line answer to a question on the forums. And I explained that there is a good reason. It is this. The guidance that I give on the forums can only ever be general advice about the subject concerned because I...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Speculative property developers: claiming VAT and the option to tax
Today, I'm tackling the complex issue of claiming VAT and how this interacts with the option to tax for speculative property developers. If you understand how the main principles work, this will help you to understand that claiming VAT on costs isn't simply a case of...
Not another VAT newsletter: September 2016.
Not another VAT newsletter: September 2016. I hope you've all enjoyed what is probably our last blast of summer this week! In the meantime, there are plenty of topical VAT issues to think about. The pros and cons of VAT group registrations HMRC recently issued...
Revoking the option to tax under 20 year rule
It seems like a lifetime ago since the option to tax was introduced into UK law and I think it's a good time to remind ourselves about revoking the option to tax under the 20 year rule. But let's go back to basics and the purpose of "opting to tax". At the time, it...