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Issue, transfer, receipt of, and dealing with money

The UK VAT legislation contains an exemption for the issue, transfer, receipt of, or any dealing with:

1. •

   money

2. •

   any security for money, or

3. •

   any note or order for the payment of money

VATA 1994, Sch 9, Pt II, Group 5, Item 1

This UK legislation was derived from EU legislation exempting transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collection.

An understanding of these provisions and how they have been interpreted is integral to determining the VAT liability of supplies of money and related services.