United Kingdom Removes Outdated EU Exit Text from Specified-Supplies VAT Guidance

Summary

• HMRC updated its transitional guidance for specified supplies of finance and insurance services on 13 October 2026.
• The update removed outdated EU Exit transitional text from the overview section.
• The substantive guidance continues to explain input VAT recovery for qualifying specified supplies made to EU customers after 31 December 2020.

Extended article

HM Revenue & Customs has updated its transitional guidance on specified supplies of finance and insurance services. The change announced on 13 October 2026 removes outdated EU Exit transitional text from the overview section.

The guidance continues to explain that certain exported financial and insurance services are treated as specified supplies, allowing deduction of associated input tax. Following the changes effective from 11pm on 31 December 2020, the specified-supplies regime includes qualifying supplies to customers belonging in the EU as well as customers outside the EU. The guidance also covers direct attribution, residual input tax, partial exemption special methods, provisional recovery rates and tax points for insurance premiums.

Source

• HMRC: Transitional Guidance for VAT Specified Supplies

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