- HMRC issued guidance on VAT treatment of overage payments.
- Overage payments are additional payments made after property purchase.
- VAT liability of overage is separate from the initial sale.
- VAT liability is determined at the time of overage payment supply.
- Special rules apply to new commercial buildings under three years old.
Source: taxscape.deloitte.com
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"
- VAT Exemption for Medical vs Cosmetic Treatments: Key Tribunal Guidance for Clinics and Practitioners
- HMRC Updates Guidance on Lost VAT Appeals: New Cases Added and Amended
- VAT Recovery Falls Despite Increased Crackdown on Business Tax Avoidance, HMRC Figures Show
- VAT Late Filing Penalties: Software Failure and Employee Error Not Reasonable Excuse, Appeal Dismissed
- Corrupt Directors Jailed for £20m VAT Fraud After Secret Meetings and Fake Offshore Schemes













