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VAT

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

In this section

Practical guidance

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

TAXguide 18/20: VAT MOSS – what happens following the end of the UK VAT MOSS scheme

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.

TAXguide 21/17: The tax implications of Brexit

Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.

Features and articles

Tax news in brief

Highlights from the broader tax news for the week ending 23 March 2022, including: guidance on plastic packaging tax that has the force of law; increased interest rates for late payment of tax; and a tax-geared penalty for failure to comply with an information notice.

Tax news in brief

Highlights from the broader tax news for the week ending 16 March 2022, including: guidance for businesses who continued to use the Lennartz mechanism; and a warning from HMRC about sharing personal information.

Babylon Farms

A recent case has highlighted the need for VAT registered businesses to be operating on sound and commercial terms for input VAT to be reclaimable. In particular this case focused on an agricultural activity which was being operated through a company, separately to the owners’ other activities.

Tax news in brief

Highlights from the broader tax news for the week ending 9 March 2022, including: HMRC guidance on new power; HMRC payments; refunds of VAT wrongly charged; freeport tax site designation; QAHC guidance; new VAT regulations; HMRC webinars; guidance for employers paying overseas tax; and COVID travel easement ending.

New tax measures for 2022

Angela Clegg outlines changes scheduled for April 2022 involving uncertain tax treatments, plastic packaging tax, residential property developer tax, MTD for VAT, trading licences, QAHCs, reliefs for the creative sector, tonnage tax, and national insurance.

Webinars and recordings

UK GAAP Update October 21

This webinar will cover the latest developments in UK GAAP, focusing on topics relevant to the preparation of accounts for periods beginning on or after 1 January 2021.

New E-Commerce VAT regimes in the EU and UK

From 1 July 2021, the existing Mini One Stop Shop (MOSS) scheme transitions to a new framework. This is the 2021 EU e-commerce VAT package. This webinar will provide an explanation of the new EU -ecommerce VAT regime.

Construction Industry Scheme VAT reverse charge

In this webinar, Neil Warren, Independent VAT speaker, author and consultant explains the new rules on VAT domestic reverse charge for construction services and how it will affect your clients.

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.

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 Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 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 Core Accounting and Tax Service.

VAT

This chapter outlines the UK VAT rules for company motor vehicles, business entertainment and other employee benefits.

The VAT return

This chapter is designed to give a basic guide to the completion of the VAT return.

The Flat Rate Farmers' Scheme

This chapter covers VAT in relation to the Flat Rate Farmers' Scheme.

The Flat Rate Scheme for Small Businesses

This chapter covers VAT in relation to the Flat Rate Scheme for Small Businesses.

Value added tax 2021-22

An accessible guide to current VAT law, written for both professional advisers and non-professionals.

Charities

A full chapter on the taxation of charities in the UK in this title aimed at finance and business undergraduate students.

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Daily Telegraph tax guide 2018, The: Understanding the tax system, completing your tax return and planning how to become more tax efficient

Guide to completing a Self-Assessment tax return for 2017/18, with advice and worked examples covering key aspects of personal taxation in the UK

Value added tax 1

A chapter setting out the essential principles of VAT, as set out in the Value Added Tax Act 1994 and subsequent Finance Acts.

Value added tax 2

This second chapter on VAT explains how the tax is administered by HMRC, as well as a number of schemes which simplify the VAT system.

VAT administration, appeals and interest

A high level overview of the framework of VAT administration covering appeals and the interest charged on VAT recovered through the raising of an assessment.

Scope and rates of value added tax

Short summary of what is chargeable for VAT in the UK, who constitutes a taxable person and how much tax is paid at different rates of VAT.

Penalties and surcharges

Section covering the penalties for late VAT registration, unauthorised issue of tax invoices, and late, fraudulent or erroneous tax returns.

Registration and de-registration

Briefly explains who has an obligation to register for VAT with a worked example for a small business. It also notes the pros and cons of voluntary VAT registration.

Recovery of VAT cross-border

This chapter explains the schemes for businesses recovering VAT incurred within the EU.

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ICAEW REP 001-22 Corporate redomiciliation

ICAEW’s Business Law and Tax Faculties respond to BEIS and HMRC proposals to introduce a facility for companies incorporated overseas to transfer their place of registration to the UK.

ICAEW REP 95/21 Autumn Budget 2021 representations - Building a modern tax system

A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.

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.

EU VAT e-commerce package

<p>Paper from HMRC on the EU rule changes from 1 July 2021 relating to the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland.</p>

Import goods into the UK: step by step

Step-by-step guide explaining how to bring goods into the UK from any country. It covers tax and duty, customs declarations, licences and certificates, VAT refunds, commodity codes, and other import procedures.

Check when you can account for import VAT on your VAT Return

Information on which businesses can, or need to, account for import VAT on their VAT Return (also called postponed VAT accounting). It also covers businesses that use agents or forwarders to import goods on their behalf, how to complete customs declarations, and importing merchandise in baggage.

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