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VAT

Expert commentary and practical guidance from ICAEW related to VAT under the UK tax regime.

Contents
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Looking up the front of the Bank of England towards a blue sky.
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Thought leadership

How to fix VAT

ICAEW explores the challenges and opportunities offered in reimagining VAT and it's application. Read about the history of VAT, the lessons that can be learned from outside the UK and the potential of digitalisation.
Browse resources
Exclusive

VAT: 50 years young

Stephen Dale reflects on how the past 50 years informs the future for the UK VAT system – the topic of ICAEW Tax Faculty’s conference on 22 May.
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Exclusive

TAXguide 03/22: changes to VAT penalties and interest charges

This TAXguide provides details of the new penalties for late submission and payment of VAT returns, which takes effect for VAT periods starting on or after 1 January 2023.
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MTD and VAT

The first stage of HMRC's Making Tax Digital (MTD) programme focuses on VAT and imposes new requirements keeping on some VAT registered businesses and organisations from April 2019.
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Features and articles

Lessons on VAT from New Zealand and Australia
  • Article
  • 27 Nov 2024
For UK tax policy stakeholders, fascinating case studies of how other countries are approaching VAT can be found on the other side of the world.
E-invoicing to be mandatory for EU VAT by 2030
  • Article
  • 07 Nov 2024
Agreement has been reached on a package of digital measures for VAT in the European Union (EU), including the introduction of a real-time digital reporting system through electronic invoicing (e-invoicing).
Technical round-up: October 2024
  • Article
  • 31 Oct 2024
This month’s top stories feature eight Budget updates covered by ICAEW’s Tax Faculty, a list of software products that are now ready for MTD ITSA, and new VAT guidance for private schools.
The complicated and costly world of VAT
  • Article
  • 23 Oct 2024
Everyone knows UK VAT is complicated and, for taxable persons, costly to comply with. But why is the tax so complex, and why does it often impose onerous compliance costs?
ICAEW helps improve HMRC’s capital allowances guidance
  • Article
  • 17 Oct 2024
Following a meeting at which HMRC set out seven areas of the capital allowances regime where its guidance could be improved, ICAEW has provided written comments on those areas and on the guidance generally.
Panel supports UK re-domiciliation regime
  • Article
  • 14 Oct 2024
The panel set up by the previous government to explore a possible UK re-domiciliation regime has outlined how the regime could work and the tax, accounting and insolvency legislation that may be needed.
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Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax

TAXguide 02/2024: Taxation of cryptoassets for businesses
  • Technical release
  • 28 Feb 2024
TAXguide covering the UK taxation of cryptocurrency held by businesses including corporation tax, stamp taxes, employment income and VAT.
Exclusive TAXguide 03/22: changes to VAT penalties and interest charges
  • Technical release
  • 13 Dec 2022
This TAXguide provides details of the new penalties for late submission and payment of VAT returns, which takes effect for VAT periods starting on or after 1 January 2023.
Exclusive TAXguide 20/20 New VAT ecommerce rules in EU from 1 July 2021 – how will they affect UK businesses?
  • Technical release
  • 23 Dec 2020
Major VAT changes are being introduced by the EU on 1 July 2021, just six months after the end of the UK’s transitional deal. Neil Warren provides guidance on the key changes that will take place.
Exclusive TAXguide 18/20: VAT MOSS – what happens following the end of the UK VAT MOSS scheme
  • Technical release
  • 11 Dec 2020
The UK has left the EU, with 31 December 2020 marking the end of the transitional deal that has been in place since 1 February 2020. The EU departure will mean important changes for UK businesses that sell broadcasting, telecommunication and electronic (BTE) services to non-business customers (B2C) inside the EU. Neil Warren provides guidance on the key changes that will take place.
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Insurance Premium Tax

Draft Finance Bill 2022-23: indirect tax measures
  • Article
  • 21 Jul 2022
The draft legislation, released on 20 July, includes numerous pre-announced measures, except for the government’s response on alcohol duty.
Is it time to make VAT simple?
  • Article
  • 30 Mar 2022
It is 50 years since the Budget creating the Finance Act 1972 delivered a new, simple-to-operate tax to the UK. Neil Gaskell looks at why VAT is now due a major overhaul.
Autumn Budget 2021: Duties
  • Helpsheets and support
  • 02 Nov 2021
ICAEW's Tax Faculty provides a summary of the announcements in the 2021 Autumn Budget on duties, covering alcohol duties, excise duties, insurance premium tax, vehicle excise duties, tobacco duty and more.

Podcasts, webinars and recordings

How to fix VAT
  • Podcast
  • 29 Oct 2024
In this episode we’ll be talking about the problems with VAT and why ICAEW is launching a new campaign, How to Fix VAT.
Corporate reporting update and VAT on private hire vehicles
  • Podcast
  • 06 Jun 2024
In this episode of Accountancy Insights, we discuss important developments in corporate reporting, including amendments to UK GAAP, new standards IFRS18 and IFRS19, and the timeline for implementing IFRS S1 and IFRS S2.
VAT exemptions for private schools and final CPD update
  • Podcast
  • 08 Sep 2023
In this ICAEW Insights episode, we discuss Labour’s proposals for removing VAT exemptions from private schools, as well as our final CPD update before the new regulations come into force.
VAT at 50, TAM Day and engaging in public practice
  • Podcast
  • 05 May 2023
On the latest ICAEW Insights podcast, we discuss the month’s key developments in accountancy.
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Markel Tax FAQs

Questions and answers on UK tax issues and trends from the ICAEW Tax and VAT Helpline, a subscription service provided by MarkelTax.

Exclusive VAT on payments generated by business gained by an associated company following a referral
  • Helpsheets and support
  • 04 Nov 2024
FAQ on the VAT liability on payments to a vehicle sales company, received from an insurance company, when clients referred by the vehicle seller take out a policy.
Exclusive VAT on sale to and rent back of property to a holding company
  • Helpsheets and support
  • 04 Oct 2024
FAQ on whether a client firm, who will be renting its premises back from a newly formed holding company that it has recently sold the property to, will need to charge VAT on the sale of that property.
Exclusive Claiming VAT on private school fees through a business
  • Helpsheets and support
  • 03 Sep 2024
FAQ on whether a VAT-registered business client can claim back VAT on his children's school fees, through his company, with the forthcoming changes to the VAT treatment of private school fees from 1 January 2025.
Exclusive VAT and single/mixed supply of goods and services
  • Helpsheets and support
  • 01 Aug 2024
FAQ on how a vehicle hire firm should treat VAT liability on the lease of a car (which attracts standard rate), where an additional service of child seat hire incurs a lower VAT rate.
Terms of use

Markel Tax FAQs are correct at the time of going to press. To check current validity, please call the ICAEW Tax and VAT Helpline.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Busy practitioner
  • eBook
  • 2024
  • Julian Harris, Mark McLaughlin, Andrew Needham, Lee Sharpe
  • Busy Practitioner
Monthly updates and technical articles, covering recent developments in UK tax and relevant legal cases.
Exclusive VAT
  • eBook chapter
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
Six chapters on VAT, covering registration and deregistration, place of supply, simplification schemes for small business, special schemes and partial exemption and VAT on land and property.
Exclusive Value added tax
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on VAT in relation to business partnerships, including LLPs.
Exclusive Bloomsbury's tax rates and tables 2024/25: Finance (No. 2) Act Edition
  • eBook
  • 2024
  • Lucy Webb
Tax rates and tables updated to reflect measures passed in the Finance (No 2) Act 2024.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

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eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive EU VAT compass 2023/2024
  • eBook
  • 2023
  • Fabiola Annacondia, IBFD
A reference guide to the VAT system of the EU. It includes the consolidated text of the current EU VAT Directive (No. 2006/112), as well as the texts of several other Directives in the field of VAT. Also included are summaries of more than 1,100 ECJ judgments in VAT cases, along with an overview of the VAT options that have been exercised by individual Member States.
Exclusive Taxation of companies in distress — United Kingdom
  • eBook chapter
  • 2023
  • Heydon Wardell-Burrus
  • Taxation of Companies in Economic and Financial Distress
A chapter examining the tax treatment of companies in economic and financial distress in the United Kingdom. Covers topics including the impairment of loans and other commercial receivables, treatment of losses, capital injections, tax deferrals, and liability to pay taxes.
Exclusive Value added tax
  • eBook chapter
  • 2023
  • Telegraph Media Group
  • The Telegraph Tax Guide
A chapter providing practical guidance on various aspects of VAT administration. Includes coverage of rates, exempt supplies, registration, VAT invoices, filing of returns, input tax, motor cars and fuel, special schemes for retailers, the Flat Rate Scheme, cash accounting, annual accounting, VAT visits and inspections, penalties, appeals, and complaints.
Exclusive A guide to the European VAT directives
  • eBook
  • 2023
  • Julie Kajus, Ben Terra
Includes an introduction to European VAT (value added tax) 2023 and the integrated text of the VAT Directive and Implementing Regulation.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on VAT. A selection of recent books covering this topic is set out below.
Tolley's value added tax, 2024-25 (2nd ed.)
  • Library book
  • 2024
  • A. Millar, L. Fallon, E. Thompson
  • LexisNexis
An annual book summarising the current law and practice of value added tax, including relevant statutory instruments, tribunal and court cases, VAT notices, and HMRC Briefs. It is arranged by subject, with various aspects being covered in turn. Worked examples are included to clarify complex points.
Tolley's tax guide, 2024-25
  • Library book
  • 2024
  • S. Maxwell, J. Houghton
  • LexisNexis
An annual single-volume guide to various aspects of taxation in the UK. Includes sections on employment, pensions, trading, family, trusts, estates and more. Points are illustrated with worked examples and clear tables.
Tolley's orange tax handbook, 2024-25
  • Library book
  • 2024
  • R. Cordara (ed.)
  • LexisNexis
Annual two-volume work containing the latest indirect tax legislation. It includes up-to-date legislation and technical material relating to value added tax, stamp taxes, insurance premium tax, landfill tax, aggregates levy and climate change levy.
Value Added Tax, 2024-25
  • Library book
  • 2024
  • C. McGee
  • Claritax Books
This annual title offers practical, in-depth commentary on VAT. It is written at an intermediate level, aimed at tax professionals who do not specialise in VAT.
Tolley's VAT cases, 2024
  • Library book
  • 2024
  • L. Fallon, A. Millar, E. Thompson
  • LexisNexis
An annual guide to VAT cases. This latest edition includes summaries of over 4,000 court and VAT Tribunal decisions from 1973 to 1 January 2024.
Tolley's tax computations, 2023-24
  • Library book
  • 2023
  • Tolley's Editorial Team
  • LexisNexis
An annual volume presenting over 500 up-to-date examples illustrating the practical operation of the main UK taxes, as well as national insurance contributions. Includes detailed explanatory notes with full references to relevant statutes and HMRC material.
Tolley's taxwise, 2023-24
  • Library book
  • 2023
  • T. Agnew, et al.
  • LexisNexis
An annual two-volume set offering practical expert guidance on how to approach real-world tax computations. Brings together relevant points from current legislation, case law and other official material. Worked examples and detailed explanatory notes are included to illustrate complex points.
VAT at 50
  • Library book
  • 2023
  • Tolley Tax Team, K. Hall
  • LexisNexis
A brief digest looking back over the first fifty years of VAT in the UK, and considering what has changed during that time.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 067/24 Applying VAT to private school fees
  • Representation
  • 13 Sep 2024
  • PDF (266kb)
A comment dated 13 September on the Applying VAT to Private School Fees and Removing the Business Rates Charitable Rates Relief for Private Schools Technical Note published by HM Treasury on 29 July 2024.
ICAEW REP 061/24 VAT Treatment of Private Hire Vehicles
  • Representation
  • 26 Jul 2024
  • PDF (187kb)
A representation dated 26 July 2024 to a consultation published by HM Treasury, HMRC, and the Department for Transport on 18 April 2024.
ICAEW REP 091/23 Legislative reform of the Terminal Markets Order
  • Representation
  • 12 Sep 2023
  • PDF (209kb)
A representation dated 12 September 2023 to a consultation published by HM Treasury and HM Revenue & Customs on 18 July 2023.
ICAEW REP 081/23 Tackling umbrella company non-compliance
  • Representation
  • 30 Aug 2023
  • PDF (318kb)
A representation dated 29 August 2023 to a consultation published by HM Treasury, HM Revenue & Customs and Department for Business & Trade on 6 June 2023.
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Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

VAT schemes
  • Website
  • 14 Dec 2023
  • GOV.UK
Information on the voluntary VAT schemes which exist to simplify the way some VAT-registered businesses calculate and account for VAT to HMRC.
VAT penalties and interest
  • Website
  • 04 Jan 2023
  • GOV.UK
Information from HMRC on penalties and interest which may apply when VAT Returns are submitted late, or when VAT or penalties are paid late.
Declaring goods and paying tax when using a Freeport customs site
  • Website
  • 20 Sep 2021
  • HMRC
Guidance for businesses on how to declare goods brought in or removed from a customs site, moved between different customs sites, moved with the same site, and when goods and services can be zero-rated for VAT.
VAT rates in the EU
  • Website
  • 01 Jan 2020
  • European Commission
Information from the European Commission on the different VAT rates that apply in respective EU Member States.
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ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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