The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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 provides an overview of the VAT treatment of services that are provided in connection with the burial or cremation of human remains.
The following services are exempt from VAT:
the disposal of the remains of the dead
making arrangements connected with the disposal of the dead
services of one undertaker to another in connection with a specific funeral or cremation
VATA 1994, s 31; VATA 1994, Sch 9, Group 8, items 1 and 2; VBURC1000; 2006/112/EC, Article 371, Annex X, Part B(4); De Voil Indirect Tax Service V4.151; HMRC Notice 701/32
The VAT exemption only applies to the disposal of human remains. Disposal includes, burial, cremation or disposal at sea. This was confirmed in the tribunal case UFD Ltd.
The burial or cremation of an animal is liable to VAT at the standard rate.
The exemption under VATA 1994, Sch 9, Group 1 (land) applies to the provision of grave space and the right to place an urn in a niche, etc.
If the organisation provides a ‘funeral package’, the following goods / services will be exempt from VAT, providing the overall package includes disposing of the remains of the deceased person:
coffin cover / fittings
casket, scatter tube or urn
digging and grave preparation
transporting the deceased person to the burial or cremation ground
shroud / robe
using the chapel of rest
transportation of the mourners
tolling the bell and music at the service
If the organisation provides the following services, supplied in
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