- This brief provides information on the VAT treatment of voluntary carbon credits from 1 September 2024.
- It applies to businesses and agents in the environmental services market involved in creating, buying, or selling voluntary carbon credits.
- Voluntary carbon credits are tradable instruments representing the reduction or removal of carbon dioxide or greenhouse gases.
- Previously, voluntary carbon credits were treated as outside the scope of UK VAT due to the absence of evidence for a secondary market.
- However, with changes in the market and the emergence of secondary market trading, the sale of voluntary carbon credits will be taxable for VAT in the UK starting from 1 September 2024.
Source: gov.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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