- 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.
Latest Posts in "United Kingdom"
- City of Portsmouth College v HMRC: VAT on Government Grants for Free Education Services
- Understanding VAT Obligations and Reliefs for Charities in the UK
- Guide to Claiming VAT and Import Duty Repayments: Eligibility, Process, and Requirements
- AI in Tax: Balancing Innovation and Risks in a Rapidly Evolving Landscape
- Deos Group.co.uk Ltd Wins Appeal Against HMRC on VAT Input Tax Disallowance and Penalty
