Liability ― money and related services

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

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:

•
money
•
any security for money, or
•
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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