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UK Act of Parliament
1994
United Kingdom
Value Added Tax Act 1994
At a glance
Enforced by
What's here
24 compliance obligations, 51 practical guides across 7 topics · 58 journeys · 5 statutory instruments
Penalty landscape
7 of 24 obligations carry an unlimited fine. 5 carry different penalties and 12 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 12
- Operator 2
- Trader 2
- Taxable Person 1
- Director or Officer 1
Plus 6 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Stop your sole trader business
- 5 steps
Starting a business in Northern Ireland
- 1 step
Understanding VAT from scratch
- 10 steps
Growing your business
- 2 steps
Start importing goods to the UK
- 8 steps
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
27 guidesAccommodation regulations for hotels, B&Bs, and short-term lets
Cancel your VAT registration
Check if you need to register for VAT
Choose the correct VAT rate
Construction tax compliance - how CIS, VAT, CITB, and PAYE work together
Correct VAT return errors
Holiday let tax obligations and business rates
How taxes work for limited companies
Supporting — topic alignment
3 guidesMentioned in related content
21 guides- Approvals and registrations you need before trading
- Change from sole trader to limited company
- Comply with tipping law in hospitality
- Corporation Tax basics
- Dissolve a business partnership
- Doing business in Northern Ireland: key differences from Great Britain
- Go full-time with your business
- How UK customs works after EU exit: import duty, the 2018 Act, and the 2018 Regulations
- Maintain your import records
- Make a customs declaration on CDS for an import into Great Britain
Other Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 749 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 110 duties
- Licensing Act 2003 2003 105 duties
- Merchant Shipping Act 1995 1995 97 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 86 duties
Operators also bound by 125 other Acts (top 5 shown)
- Space Industry Regulations 2021 2021 71 duties
- Payment Services Regulations 2017 2017 41 duties
- Air Navigation Order 2016 2016 34 duties
- The Quarries Regulations 1999 1999 31 duties
- Reservoirs Act (Northern Ireland) 2015 2015 22 duties
Traders also bound by 219 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 952 duties
- TULRCA 1992 1992 39 duties
- Companies Act 2006 2006 39 duties
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 2013 39 duties
- The Customs (Import Duty) (EU Exit) Regulations 2018 2018 33 duties
Taxable Persons also bound by 3 other Acts
- Council Directive 2006/112/EC (EU VAT Directive - retained for reference) 2006 52 duties
- Value Added Tax Regulations 1995 1995 17 duties
- Income Tax (Earnings and Pensions) Act 2003 2003 1 duty
Directors and Officers also bound by 224 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 75 duties
- Companies Act 2006 2006 63 duties
- Insolvency Act 1986 1986 46 duties
- CCBSA 2014 2014 22 duties
- CAICEA 2004 2004 18 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part I — The charge to tax
Scope of VAT on taxable supplies.
Unlimited fine- Charge and account for VAT on taxable business supplies Taxable Person
Removal from warehousing: accountability.
Unlimited fine- Pay VAT when removing goods from a warehouse Any Person
Browse 45 other sections in this Part — procedural / definitional / commencement
Value added tax.
Rate of VAT.
Taxable persons and registration.
Supplies of electronic, telecommunication and broadcasting services: special accounting schemes
Meaning of supply: alteration by Treasury order.
Supplies of goods facilitated by online marketplaces: deemed supply
Time of supply.
Place of supply of goods.
Place of supply of services
Reverse charge on goods supplied from abroad
Reverse charge on supplies received from abroad.
Place where supplier or recipient of services belongs.
Reverse charge on gas , electricity, heat or cooling ...
Scope of VAT on acquisitions from member States.
Meaning of acquisition of goods from another member State.
Time of acquisition.
Place of acquisition.
Acquisitions from persons belonging in other member States.
Call-off stock arrangements
Meaning of “importation of goods” into the United Kingdom
Application of customs enactments
Postal packets
Free zone regulations.
Place and time of ... supply.
Fiscal warehousing.
Fiscally warehoused goods: relief.
Warehouses and fiscal warehouses: services.
Deficiency in fiscally warehoused goods.
Sections 18A to 18E: supplementary.
Value of supply of goods or services.
Valuation of acquisitions from other member States.
Value of imported goods.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Value of supplies involving relevant machine games
Meaning of “relevant machine game”
Input tax and output tax.
Payment by reference to accounting periods and credit for input tax against output tax.
Input tax allowable under section 25.
Disallowance of input tax where consideration not paid
Disapplication of disallowance under section 26A in insolvency
Adjustment of output tax in respect of supplies under section 55A
Flat-rate scheme
Goods imported for private purposes.
Payments on account of VAT.
Invoices provided by recipients of goods or services.
Part II — Reliefs, exemptions and repayments
Refunds of VAT to Academies
- Claim a VAT refund for non-business Academy activities Director or Officer
Refunds of VAT to charities within section 33D
- Claim VAT refunds for non-business charity activities Any Person
Refund of VAT to persons constructing certain buildings.
- Claim a VAT refund on self-build or residential conversion projects Any Person
Applications for forwarding of VAT repayment claims to other member States
Other duties (1) — Crown / regulator
- HMRC must forward EU VAT refund claims for UK businesses Statutory regulator
Browse 15 other sections in this Part — procedural / definitional / commencement
Reduced rate
Zero-rating.
Exempt supplies ....
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Refunds of VAT in certain cases.
Refunds of VAT to museums and galleries
Charities to which section 33C applies
Power to extend refunds of VAT to other persons
Capital goods.
Bad debts.
Relief from VAT on acquisition if importation would attract relief
VAT on importation of goods: reliefs etc
Importation of goods by taxable persons.
Repayment of VAT to those in business overseas.
Refunds in relation to new means of transport supplied to other member States.
Part III — Application of Act in particular cases
Local authorities.
Other duties (1) — Crown / regulator
- Register for VAT regardless of turnover Local authority
Browse 34 other sections in this Part — procedural / definitional / commencement
Northern Ireland Protocol
Application to the Crown.
Supply of goods or services by public bodies
Groups of companies.
Groups: eligibility.
Power to alter eligibility for grouping
Section 43A: control test
Groups: applications.
Groups: termination of membership.
Groups: duplication
Supplies to groups.
Partnerships.
Business carried on in divisions or by unincorporated bodies, personal representatives etc.
Agents etc.
VAT representatives and security.
Transfers of going concerns.
Terminal markets.
Margin schemes.
Margin schemes and export or removal of goods
Buildings and land.
Face-value vouchers issued before 1 January 2019
Vouchers issued on or after 1 January 2019
Postage stamps issued on or after 1 January 2019
Trading stamp schemes.
Tour operators.
Farmers etc.
Customers to account for tax on supplies of gold etc.
Customers to account for tax on supplies of goods or services of a kind used in missing trader ... fraud
Deposit schemes: designation
Deposit schemes: value of supply
Deposit schemes: liability to account for VAT on deposit amounts
Fuel for private use.
Determination of consideration for fuel supplied for private use.
Importation following zero-rated free zone supply: deemed supply
Part IV — Administration, collection and enforcement
Incorrect certificates as to zero-rating etc.
Unlimited fine- Give incorrect zero‑rating certificate Any Person
Failure to submit section 55A statement
Fine up to £1,500- Fail to submit a VAT reverse charge (Section 55A) statement Any Person
Breaches of walking possession agreements.
Unlimited fine- Breach of walking possession agreement Any Person
Breaches of regulatory provisions.
Fine up to £1,500- Breach of VAT administrative and record-keeping rules Any Person
Breach of record-keeping requirements etc. in relation to transactions in gold.
Unlimited fine- Fail to keep required gold transaction records Any Person
Breach of record-keeping requirements imposed by directions
Fine up to £6,000- Fail to follow HMRC directions for record-keeping Any Person
Mitigation of penalties under sections 60, 63, 64 , 67, 69A and 69C.
Unlimited fine- Mitigation of VAT penalties Any Person
Offences.
14 years imprisonment- Knowingly facilitate fraudulent VAT evasion Any Person
Joint and several liability: non-UK sellers in breach of Schedule 1A registration requirement
- Remove non-UK sellers who fail to register for VAT from your online marketplace Operator
Display of VAT registration numbers
- Verify and display seller VAT numbers on online marketplaces Operator
Browse 38 other sections in this Part — procedural / definitional / commencement
General provisions relating to the administration and collection of VAT.
Disclosure of avoidance schemes
Payment by cheque
International VAT arrangements
The default surcharge.
Default surcharge: payments on account.
Relationship between sections 59 and 59A.
VAT evasion: conduct involving dishonesty.
VAT evasion: liability of directors etc.
Penalty for misdeclaration or neglect resulting in VAT loss for one accounting period equalling or exceeding certain amounts.
Repeated misdeclarations.
Inaccuracies in section 55A statements
Failure to notify and unauthorised issue of invoices.
Breach of controlled goods agreement
Transactions connected with VAT fraud
Penalties under section 69C: officers' liability
Publication of details of persons liable to penalties under section 69C
Construction of sections 59 60 to 70.
Failure to make returns etc.
Interest on VAT recovered or recoverable by assessment.
Assessments in cases of acquisitions of certain goods by non-taxable persons.
Assessment of amounts due by way of penalty, interest or surcharge penalty ....
Section 76: cases involving special accounting schemes
Assessments: time limits and supplementary assessments.
Joint and several liability of traders in supply chain where tax unpaid
Joint and several liability: sellers identified as non-compliant by the Commissioners
Joint and several liability under section 77B or 77BA : assessments
Joint and several liability under section 77B or 77BA : interest
Exception from liability under section 5A
Late payment interest on amounts of VAT due
Interest in certain cases of official error.
Assessment for interest overpayments.
Repayment supplement in respect of certain delayed payments or refunds.
Credit for, or repayment of, overstated or overpaid VAT
Arrangements for reimbursing customers.
Assessments of amounts due under section 80A arrangements.
Assessed amounts of overpayments etc deemed to be amounts of VAT
Interest given by way of credit and set-off of credits.
Part V — Reviews and Appeals
Review by HMRC
Other duties (1) — Crown / regulator
- HMRC must review a VAT decision upon request Statutory regulator
Review out of time
Other duties (1) — Crown / regulator
- HMRC must review a VAT decision following a late request Statutory regulator
Nature of review etc
Other duties (1) — Crown / regulator
- HMRC must review tax decisions and notify you of the outcome Statutory regulator
Browse 14 other sections in this Part — procedural / definitional / commencement
Meaning of “tribunal”
Appeals.
Offer of review
Right to require review
Extensions of time
Nature of review: penalties under Schedule 24 to FA 2021
Effect of conclusions of review: penalties under Schedule 24 to FA 2021
Bringing of appeals
Further provisions relating to appeals.
Settling appeals by agreement.
Payment of tax on determination of appeal
Payment of tax where there is a further appeal
Appeals to Court of Appeal.
Enforcement of registered or recorded tribunal decisions etc.
Part VI — Supplementary provisions
Disclosure of information for statistical purposes.
2 years imprisonment- Unauthorised disclosure of VAT information Any Person
Refund of VAT to Government of Northern Ireland.
Other duties (1) — Crown / regulator
- HMRC must refund VAT to the Government of Northern Ireland Statutory regulator
Browse 15 other sections in this Part — procedural / definitional / commencement
Supplies spanning change of rate etc.
Adjustments of contracts on changes in VAT.
Failure of resolution under Provisional Collection of Taxes Act 1968.
Taxation under the laws of other member States etc.
Territories included in references to other member States etc.
Meaning of “business” etc.
Meaning of “new means of transport”.
Meaning of “online marketplace” and “operator” etc
Other interpretative provisions.
Orders, rules and regulations.
Place of supply orders: transitional provision.
Service of notices.
Savings and transitional provisions, consequential amendments and repeals.
Commencement and extent.
Short title.
Schedules
Registration in respect of taxable supplies: non-uk establishment
- Register for VAT if you have no UK business base but sell in the UK Trader
Administration, collection and enforcement
Unlimited fine- Keep VAT records, submit returns and issue VAT invoices Trader
Browse 31 other Schedules — structural / supplementary
Registration in respect of supplies from other member States
Registration in respect of acquisitions from other member States
Valuation: special cases
Valuation of acquisitions from other member states: special cases
Zero-rating
BUILDINGS AND LAND
Transitional provisions and savings
Repeals
Registration in respect of taxable supplies : UK establishment
Registration in respect of disposals of assets for which a VAT repayment is claimed
Electronic, telecommunication and broadcasting services: non-union scheme
Electronic, telecommunication and broadcasting services: Union scheme
Matters to be treated as supply of goods or services
Place of supply of services: special rules
Call-off stock arrangements
Services supplied where received
Goods Eligible to be Fiscally Warehoused
CHARGE AT REDUCED RATE
Exemptions
Anti-avoidance provisions: groups
VAT on acquisitions in Northern Ireland from member States
Goods removed to or from Northern Ireland and supply rules
Online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol
Distance selling of goods from Northern Ireland: special accounting scheme
Distance selling of goods imported to Northern Ireland: special accounting scheme
Modifications etc in connection with Schedules 9ZD and 9ZE
Face-value vouchers issued before 1 January 2019
VAT treatment of vouchers issued on or after 1 January 2019
Disclosure of avoidance Schemes
Constitution and procedure of tribunals
Consequential amendments
Other sections — not classified into a Part
These sections exist in the Act but the contents-of-Parts walker did not place them under a Part. Likely amendments or sections inserted out of the original Part structure.
Browse 2 other unclassified sections
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TABLE OF DERIVATIONS
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Tourism NI accommodation registration (opens in a new tab) Detailed Guidance
- Short-term lets licensing in Scotland (mygov.scot) (opens in a new tab) Detailed Guidance
- VAT retail schemes (opens in a new tab) Detailed Guidance
- Retail schemes notice 727 (opens in a new tab) Detailed Guidance
- VAT Cash Accounting Scheme (opens in a new tab) Detailed Guidance
- Check a VAT number (opens in a new tab) Detailed Guidance
- Bad debt relief (VAT Notice 700/18) (opens in a new tab) Detailed Guidance
- Late submission and payment penalties (opens in a new tab) Detailed Guidance
- How to fill in your VAT return (VAT Notice 700/12) (opens in a new tab) Detailed Guidance
- Pay your VAT bill (opens in a new tab) Detailed Guidance
- ... and 52 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
HM Revenue & Customs
Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …
Connected legislation
5 statutory instruments
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (5)
- Value Added Tax Regulations 1995 1995
- The Value Added Tax (Input Tax) Order 1992 1992
- The Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992 1992
- The Value Added Tax (Construction of Dwellings and Land) Order 1990 1990
- The Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019 2019
Explore more
Browse legislation
Find other UK business legislation with related guidance.
Regulators
Learn more about the bodies that enforce this legislation.