Welcome to this quarter’s VAT blog highlighting some of the most common queries we’ve answered lately.
Can the supply of dance classes and examination services by a company to private individuals be treated as exempt for VAT purposes?
For any education that is being provided for a charge and does not classify as an eligible body (such as schools or non-profit organisations), VAT will be charged in the normal way at 20%. However, in some cases this could be treated as an “exempt supply” if the training or classes are supplied by a sole proprietor or partnership. The supply of examination services is usually exempt if provided by an eligible body (such as schools, colleges or government departments).
What are the differences when you are selling goods to VAT registered businesses versus non-VAT registered customers within the EU and outside the EU?
For the sale of goods to customers who are VAT registered in the destination EU country, the business can zero-rate the supply providing:
The business should also ensure that its customer has a valid EU VAT number which should be displayed on the sales invoice and will be required in order to complete their EC Sales List.
For the sale of goods to non-VAT registered customers in other EU countries, UK VAT must be charged and accounted for just the same as sales to UK customers. However, each country has a “distance selling threshold,” therefore if the value of sales to that country breaches the threshold, the business must register for VAT in that country and charge its normal rate of VAT on sales.
If goods are exported outside the EU, UK VAT is not charged and the sale can be zero-rated providing evidence of export is held and the goods are exported within three months of sale. (This may be longer for certain goods.)
Can you reclaim the VAT element on staff entertainment?
Staff entertainment costs are recoverable, provided the costs are business-related and for staff only. Various scenarios can make this a little more confusing for businesses. Here are a few points to consider:
We’re always happy to clarify your VAT queries, so please feel free to get in touch with our VAT team today.
At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.
Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.
Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.
Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.
Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.
Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.
With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.
Voted as EXCELLENT - 9.9 out of 10 based on 164 reviews
We've always got our ears to the ground when it comes to interesting, useful and topical information relating to business and accountancy.
We love making videos that break down convoluted accountancy jargon into plain-talking, actionable and accessible facts.
In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.
Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!
At Nordens, we're committed to keeping our clients updated on all things business strategy and news. Each week we update our newsletter subscribers on what really matters in the big bad world of business. That way, you can stay one step ahead!
In celebration of our 18th birthday, we’ve launched our Refer-a-Friend scheme, allowing you to receive a thank you gift from us of up to £1,000 for successfully introducing a new client.
Our team of experts will be in touch to find the very best time to hold a free, no strings attached, one-hour consultation.