UUÂãÁÄÖ±²¥

Derivatives are financial instruments whose value is based on the value of the underlying commodity, financial instrument or currency. In order to determine the correct VAT liability of a derivative, the business or its adviser will need to ascertain the nature of the underlying supply. This guidance note provides information on the VAT treatment of the derivative and not the actual underlying product. If the business is acting as an agent or intermediary involved in these types of transactions, see the Liability - financial intermediaries and brokers guidance note for more information.

If the business is dealing with commodities traded on qualifying terminal markets, see De Voil Indirect Tax Service V4.208.