UUÂãÁÄÖ±²¥

Due to the complex nature of financial services and the number of different types of transactions that are possible, the subject of exempt finance has been covered in a number of guidance notes. This guidance note provides an overview of the VAT treatment of financial services transactions involving dealing in money, credit and debts within the UK. If financial services are provided to customers located in other countries, then the Reverse charge ― buying in services from outside the UK guidance note may be of further assistance.

Under VATA 1994, Sch 9, Pt II, Group 5, Item 1, the following supplies are exempt from VAT:

‘The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.’

However, note that under VATA 1994, Sch 8, Pt II, Group 11, Item 1, the issue by a bank of a note payable