Commentary

V16.916 VAT—guidance on the VAT treatment of certain Islamic products

Part V16 Forms and other HMRC material

V16.916 VAT—guidance on the VAT treatment of certain Islamic products

V16.916 VAT—guidance on the VAT treatment of certain Islamic products

Information Sheet 11/06, December 2006

This Information Sheet sets out guidance on the VAT treatment of certain Islamic products currently being offered to the general public, businesses and other financial institutions by various banks in the UK.

1 Introduction

1.1 What is this Information Sheet about?

HM Revenue and Customs (HMRC), providers of Islamic products and representative trade bodies have been in discussions concerning the VAT treatment of certain Islamic products currently being offered to the general public, businesses and other financial institutions by various banks in the UK. This VAT Information Sheet sets out the findings of those discussions and the VAT treatment of those products.

This VAT Information Sheet is intended to supplement, not replace, existing HMRC guidance. It is intended that the information contained herein will be included in Notice 701/49 “Finance” (Part V8) at a later date.

1.2 Who does it affect?

This VAT Information Sheet clarifies the VAT treatment of certain Islamic products currently being offered to the general public, businesses and other financial institutions by various banks in the UK and should be read by providers of those products or by those introducing customers to those providers.

1.3 When does it come into effect?

This VAT Information Sheet provides advice to providers of certain Islamic products and the VAT treatments outlined should be applied immediately.

If you are a provider of any of the Islamic products listed in this VAT Information Sheet and realise that you have treated your services incorrectly for VAT please

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