- 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"
- HMRC Clarifies VAT Treatment of Overage Payments on Land Sales
- VAT Error Correction: Amending Returns, Claiming Refunds, and Avoiding Penalties
- Court of Appeal Upholds Standard VAT Method in Hippodrome Casino Case
- Hotelbeds v HMRC: Businesses Can Reclaim VAT Without Invoices, Court Rules
- NHS Trust Wins VAT Exemption for Agency-Supplied Locum Doctors Against HMRC
