Common VAT mistakes

Produced by Tolley
Common VAT mistakes

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Common VAT mistakes
  • On-street meters
  • Business entertainment
  • Exports
  • VAT invoicing
  • VAT rates
  • Land and property
  • VAT on mileage
  • Bad debts
  • Import VAT
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note will assist businesses and their advisers in identifying common VAT mistakes. The guidance note will be especially useful when completing a VAT return or undertaking a VAT review.

The information laid out below is also summarised in the Checklist ― common VAT mistakes.

On-street meters

Common mistake:

Reclaiming VAT on on-street meter parking

VAT treatment:

Businesses should only reclaim VAT if they are in possession of a valid tax invoice or a receipt showing a VAT registration number. On-street parking meter charges are not subject to VAT so no VAT receipt will be issued. Therefore, no VAT can be reclaimed.

Relevant guidance notes:

Flowchart ― procedure for claiming input tax

Business entertainment

Common mistake:

Recovering VAT on U

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