VATupdate Newsletter Week 35 2026

BANANAS

Bananas are radioactive.

There. We thought we’d start this week’s VATupdate blog with something reassuring.

Before you panic and throw your fruit bowl out of the window, however, let’s put this into perspective. Bananas contain potassium, and a tiny fraction of naturally occurring potassium is the radioactive isotope potassium-40. So yes, every banana you eat contains a small amount of radioactivity.

In fact, you are radioactive too. So am I. We all contain potassium-40, along with several other naturally occurring radioactive isotopes. Fortunately, the quantities involved are extremely small and completely normal. Your banana is not secretly a nuclear device disguised as breakfast.

This is a nice example of the difference between something being technically true and something being practically dangerous.

And that brings us to VAT.

VAT is full of things that can sound alarming when presented without context.

“Reverse charge!”
“VAT fraud risk!”
“Incorrect place of supply!”
“Potentially non-deductible!”
“Fixed establishment!”

None of these phrases is particularly relaxing.

But the mere fact that a VAT rule creates a potential risk does not mean that a business is actually facing a significant problem. Just as the presence of potassium-40 does not make your banana dangerous to eat, the presence of a VAT risk does not automatically make a transaction disastrous.

The important question is always: how much risk are we actually talking about?

For example, a particular transaction may technically fall within a rule that requires additional documentation. That sounds serious. But if the documentation is readily available, the process is well controlled and the financial exposure is minimal, the practical risk may be limited.

Conversely, something that looks completely harmless at first sight may deserve much more attention.

That is where good VAT advice comes in. It is not about shouting “VAT risk!” every time we see something that could theoretically go wrong. Some advisors are very good at that…

To me, it’s about identifying the risk, understanding it, quantifying it where possible, and deciding what needs to be done about it.

In other words: don’t confuse radioactive with dangerous.

And perhaps that is something worth remembering when the next VAT issue lands on your desk and someone starts waving the metaphorical radiation warning sign.

Sometimes you need a nuclear response.

Sometimes you just need to eat the banana.

So next time someone tells you that something is “radioactive”, “high risk” or “potentially dangerous”, don’t panic.

Ask for the facts.

Sometimes, it’s just the banana peel that is slippery.

Anyone interested in more VAT news, developments and occasional philosophical reflections on the strange similarities between tax law and everyday life can subscribe to the weekly VATupdate newsletter at VATupdate.com

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

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