VAT trigger points
This list summarises key trigger points for VAT, please note that VAT is a complex and often overlooked area that can create both risks and opportunities for clients. A more detailed list is available outlining common triggers where VAT considerations arise across different industries and services. It serves as a practical guide to help teams cross-refer work to the VAT team, ensuring clients receive comprehensive tax advice while mitigating risks and maximising VAT efficiency.
1. Specific client types or industries
Charity clients
Education providers
Businesses providing Saas, digital platforms or e-commerce services
Dental businesses providing both VAT exempt and taxable services
Agricultural clients with diversification projects
Private clients purchasing high end luxury assets e.g. yachts, private jets
Family Investment Companies (FICs)
2. New entities
VAT registration
3. Corporate transactions & restructuring
VAT recovery on deal costs
VAT implications of restructuring transactions
Transfer of a Going Concern (TOGC)
VAT treatment of intercompany transactions post-restructuring
Contact: Bernado Almeida, Partner Windsor House
4. Private Equity & Venture Capital
Impact of VAT exempt transactions on input VAT recovery and partial exemption
Management services provided to portfolio companies
VAT treatment of non-business income
5. Property & Real Estate transactions
Clients buying, selling or leasing commercial property
Capital expenditure over £250k (Capital Goods Scheme)
Mixed use land
6. International trade & supply chain or financing
Reverse charge mechanism for cross-border transactions including advisory and professional services
VAT treatment of overseas shareholdings and international group restructuring
Impact of Brexit on VAT and customs duties for UK-EU transactions
VAT registrations in multiple jurisdictions
7. Finance & compliance
Frequent VAT errors or penalties in past VAT returns
VAT repayment claims or unexpected large VAT liabilities
Partial exemption issues
Clients struggling with MTD compliance or HMRC VAT audits and investigations
8. Other
Promotional giveaways, free samples, loyalty schemes or flash sales
Agency workers
Capital expenditure over £250k (Capital Goods Scheme)
VAT reliefs on energy-efficient equipment