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View the related checklists about Exempt supply

VAT on property transactions—checklist

VAT on property transactions—checklist This Checklist sets out the key VAT issues to be considered on property transactions. The issues listed under ‘all property transactions’ should be considered in every case, followed by the issues that are listed under the particular transaction in question (grant of a lease, assignment or surrender of a lease, freehold sale, commercial development, or residential development). The issues listed under the grant of a lease, the surrender or assignment of a lease and the sale of freehold land may also be relevant to any development transaction. For detailed commentary on the VAT issues highlighted in this Checklist, see the VAT on property subtopic and in particular, the Practice Notes referred to in this Checklist. Type of property transaction Key VAT considerations All property transactions Is the transaction a transfer of a going concern (TOGC)? If so, there is no supply for VAT purposes so no VAT is due. For more detail, see Practice Note: VAT—transfers of a going concern involving land and buildings. ...

View the related practice notes about Exempt supply

Exemptions from VAT

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 exempt supplies, such input tax is therefore an absolute (and not just a timing) costFor an explanation of the rules on recovery of input tax, see Practice Note: When can a person recover VAT?The Value Added Tax Act 1994 (VATA 1994) lists 16 categories of exempt supplies, referred to as groups. These were derived from EU Council Directive 2006/112/EC (the VAT Directive) or its predecessors, but there were important differences between the UK legislation and the VAT Directive. In cases of doubt, the UK...

VAT—partial exemption

Businesses are partially exempt for VAT purposes if they make both taxable and exempt supplies. For a description of the types of supplies that are exempt from VAT, see Practice Note: Exemptions from VAT.This Practice Note explains:•when a partially exempt business can recover its input tax•the standard method of calculating the input tax a partially exempt business can recover•the de minimis rules for recovering input tax•how a business carries out an annual adjustment•the standard method override•an overview of special methods of calculating the input tax a partially exempt business can recover•the special method override•the impact of non-business activities on a business's partial exemption position, and•the application of the partial exemption rules to VAT groupsFor details of the recovery of VAT paid on professional fees (of accountants, lawyers and other advisers) incurred on business sales and acquisitions, share sales and acquisitions, corporate restructurings, and share issues, see Practice Note: VAT recovery on corporate transactions.This Practice Note includes references to EU case law. The UK ceased to be an EU Member State...