Data and VAT

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Dean
Dean Registered Posts: 646 Epic contributor 🐘
I have a client in debt management and they are nearing VAT registration. They have been informed by a 'source' that if they obtain data (client leads etc.) via their supplier and pass that data onto other management companies... providing the data is sold within 3 months of acquiring it then it is persumably zero rated as they say data sold after 3 months is standard rated.

Is anyone able to shed some light on this muddy pond! I've got a 180 page document that i'll have to read but i'm really hoping I can be saved that time! Tried Croner and they basically said they weren't sure of this and to call back!

I also need 'gumf' on this so links and resources are most welcome.

Regards

Dean

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  • Julia Crouch
    Julia Crouch Registered Posts: 68 Regular contributor ⭐
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    Hi Dean

    I see that you have had no response on this, I am surprised:001_smile:

    I deal with a marketing company who design, print and distribute a lot of those mail shots that get put in the bin as soon as they arrive in the post.

    Data capturing that they are involved in is always standard rated to buy in, however if it forms part of the service for an advertising campagn for a charity then the sale on of the end product is 'Zero' rated.

    You have probably been to shedule 8 of the VAT Act 1994

    http://www.opsi.gov.uk/acts/acts1994/ukpga_19940023_en_18

    No mention of this there. VAT as I understand it is an EU tax and the fact that the UK have this schedule is not liked and not expected to be expanded on. I heard that somewher but cannot recall from where.

    I cannot see that this would qualify as a disbursement either and so would say that it should be treated as standard rated.

    You used to be able to write to the written enquiries section of HMR&C for a resolution, and should a question ever arise then you could rely on the response to your enquiry, but I understand that that is no longer the case.

    Not sure if this is of any help, but I hope so. It's such a shame you help so many members on this forum but you get no response when you post a question.

    Says a lot
  • Julia Crouch
    Julia Crouch Registered Posts: 68 Regular contributor ⭐
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    Think I got the wrong Dean, but hey..
  • Dean
    Dean Registered Posts: 646 Epic contributor 🐘
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    Thanks for your reply Julia.

    In the end I read through the legislation, the supporting document and made a final call to Croner. The end result is that no-one has ever heard of this 'rule' (hence the lack of response to this thread I guess) and Croner confirmed my thoughts in that if it is not specifically exempt in the legislation elsewhere then it is standard rated - pretty standard I know but as my client asked me to confirm what his 'source' told him was correct, I had to double check incase it was something I was unaware of. We all know what a mine-field VAT can be!

    Regards

    Dean
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