Tax

    Your VAT Queries Answered

    Nordens 28 May 2019

    Here are some of the most common VAT queries we've answered lately.

    Can dance classes be treated as exempt for VAT purposes?

    For any education provided for a charge that does not classify as an eligible body (such as schools or non-profit organisations), VAT will be charged at 20%. However, in some cases this could be treated as an exempt supply if the training is supplied by a sole proprietor or partnership.

    What are the differences when selling goods within and outside the EU?

    For VAT-registered businesses in the destination EU country, the supply can be zero-rated providing the goods are dispatched within three months and evidence of removal is held. For non-VAT registered customers, UK VAT must be charged as normal. If goods are exported outside the EU, UK VAT is not charged providing evidence of export is held.

    Can you reclaim VAT on staff entertainment?

    Staff entertainment costs are recoverable provided the costs are business-related and for staff only. Where directors attend as well as employees, this is also recoverable. However, if clients or non-employees attend, the input tax must be apportioned.