VATupdate Newsletter Week 51 2025

EVERYWHERE

It’s almost the last week of the year, and that’s always a good moment for reflection and for looking forward. Over the past years, we’ve covered quite a variety of topics in these weekly blogs: from earwax to bridge (the card game), and from people floating around in space to my personal opinions on electric cars.

The formula is usually the same. We start with something that has absolutely nothing to do with VAT. Something mildly entertaining. Slightly distracting. Occasionally confusing. And then: BAM! We bring you straight back to VAT reality.

That approach reflects how I personally look at the wonderful world of VAT, and it can be traced back to two key moments early in my VAT career.

The first was at university, during my very first lecture on VAT. The professor was Ben Terra. And, as far as I can remember, he didn’t talk about VAT at all.

I mean, obviously he must have. But what he actually talked about was case law of the European Court of Justice, linking practical situations to regulations, directives and sometimes rather obscure national administrative requirements. And somehow, he did it in such a way that it all made sense. To me, at least.

I was fascinated by how something as ordinary as a man turning the wheel of an organ could become a guiding light for tax advisers, taxpayers and tax authorities alike. All to determine whether VAT had to be charged or not. That was the moment I realised VAT isn’t about numbers; it’s about stories. Very expensive stories.

The second defining moment came during my first interview for a junior VAT advisor role. At one point, the partner looked out of the window, waved his arm dramatically and said:

“Look. Out there. It’s VAT. Everywhere you can see is VAT.”

At the time, I thought he had finally lost it.

I now know (and have known for quite some time) that he was absolutely right.

Because that’s what keeps me busy every day: VAT is all around you! When you talk to companies and businesses about their VAT processes, you quickly discover that VAT is never just about VAT. By looking at how VAT is handled, you learn what really drives a business, how its processes are connected, and where things actually work. Or don’t.

And through that, you connect with the people behind those processes. You have to understand their language and the way they think. You become a translator between finance and IT, between logistics and commerce. You are a psychologist, and occasionally a philosopher, trying to understand the purpose of a particular transaction flow.

In a way, you’re like a chef in the kitchen: you need to know every single ingredient, not because you enjoy recipes, but because only then can you make sure the dish that’s served has exactly the right flavour.

Too much spice? Tax risk.

Too little seasoning? Missed opportunities.

Which reminds me of a recent UK case on a rotisserie chicken. The question was simple enough: should the supply of a whole cooked rotisserie chicken attract the standard 20% VAT rate (as hot takeaway food), or be zero-rated because it is typically eaten cold or reheated later at home?

The tribunal ruled that the rotisserie chickens are indeed hot food for VAT purposes, and thus VAT must apply.

Which shows that, in VAT as in life, sometimes a chicken turns out to be hot.

Even when it has cooled down.

The VATupdate Team wishes you a Merry Christmas and all the best for the New Year. We’ll be there for you during these cosy days. And, of course, we’ll continue to bring you the latest VAT news throughout 2026.

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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