The following Tax guidance note provides comprehensive and up to date legal information covering:
Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. For further guidance, see Practice Note: Brexit—UK tax consequences.
VAT is chargeable on supplies of goods and services made in the UK by a taxable person in the course of a business unless those supplies are exempt (or zero-rated, for which, see Practice Note: VAT—zero-rated and reduced rate supplies).
VAT exemption has three main consequences:
the supplier is not required to charge VAT
the value of the supply is not taken into account when deciding whether the supplier must register for VAT, and
the supplier cannot recover any input tax attributable to its exempt supplies—for a business that makes only exempt supplies, input tax is therefore an absolute (and not just a timing) cost
For an explanation of the rules on recovery of input tax, see Practice Note: When can a person recover VAT?
The UK legislation lists 16 categories of exempt supplies, referred to as groups. These are derived from Council Directive 2006/112/EC (the VAT Directive), but there can be important differences. In cases of doubt, the UK courts will look for guidance at the provisions of the VAT Directive. The general
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.