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Liability ― money and related services


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Liability ― money and related services


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
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This guidance note covers the liability of money and related services.

For an overview of liability more broadly, see the Liability ― overview guidance note.

For in-depth commentary on the legislation and case law on the liability of money and related services see also De Voil Indirect Tax Service V4.136A.

Issue, transfer, receipt of, and dealing with money

The UK VAT legislation contains an exemption for the issue, transfer, receipt of, or any dealing with:

  1. •

    money

  2. •

    any security for money, or

  3. •

    any note or order for the payment of money

VATA 1994, Sch 9, Pt II, Group 5, Item 1

This UK legislation was derived from EU legislation exempting transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collection.

An understanding of these provisions and how they have been interpreted is integral to determining the VAT liability of supplies of money and related services.

Money

Money is not defined in the VAT legislation except to say that it includes

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  • 03 Oct 2024 10:11

Home/ Tolley Tax Guidance/ Value Added Tax / Determining VAT liability

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