VAT recovery on deal costs is one of the most challenging areas of VAT. The rules are complex, evolving, and heavily scrutinised by HMRC. Errors can result in irrecoverable VAT, higher transaction costs, and potential disputes.

Businesses undertaking acquisitions, restructurings, or disposals must carefully consider VAT treatment. The outcome often depends on:

• The nature of the acquisition, and

• The link between the costs incurred and the business’s taxable economic activities.

Businesses must keep proper records as proof of export.

🔁 When Must You Self-Charge VAT?

In some cases, you—not your supplier—must account for VAT. This applies under the reverse charge and self-supply rules, designed to tackle fraud and tax avoidance.

If you buy services from abroad (e.g. digital, professional, or IP services), you must self-charge VAT. The same applies in the UK construction industry, and for high-value goods like mobile phones and computer chips.

Suppliers issue 0% VAT invoices, and customers account for output and input VAT on their return.

Need clarity? 4 Eyes Ltd can guide your compliance.
👉 www.4eyesltd.co.uk

📈 Approaching the VAT Threshold? Don’t Get Caught Out

UK businesses must register for VAT once taxable turnover exceeds £90,000 in a rolling 12 months — and many don’t realise what counts. Zero-rated sales, equipment hire, and personal use of assets can all push you over.

You have 30 days to register, and late registration can trigger penalties of 5%–15%.

Expecting to breach £90,000 in the next 30 days? You must register immediately.

🚨 Overseas sellers? No threshold — registration is required from your first UK sale.

4 Eyes Ltd can guide you through timely registration and compliance.
👉 www.4eyesltd.co.uk

🚨 Expanding into the EU? Big VAT Changes Ahead

From July 2028, the EU’s ViDA reforms will overhaul VAT for non-EU sellers — ending the special arrangement and requiring VAT at the point of sale. The IOSS scheme becomes mandatory for consignments under €150, or sellers must register in each EU country. Businesses from non-cooperative countries will need EU tax reps, and customs agents may share VAT liability. Under DAC7, platforms like Amazon must report seller data and may be liable for misreporting.

Need help navigating the changes? 4 Eyes Ltd can support your EU VAT compliance.
👉 www.4eyesltd.co.uk

CBAM and carbon taxes - where are we now?

The UK Government has introduced new steel import measures, effective 1 July 2025, to prevent trade flow diversions following recent US tariff changes. Annual increases in Tariff Rate Quotas (TRQs) will be reduced from 3% to 0.1%, with new caps on residual quotas for categories 4 (15%), and 7 and 13 (20%). Unused quarterly quotas can no longer roll forward, and country-specific quota holders are barred from accessing residual quotas in the final quarter. Developing country exemptions will be updated using 2024 import data. These measures follow TRA recommendations and are separate from the current Safeguard consultation closing in July.

The UK’s packaging Extended Producer Responsibility (EPR) scheme is now live, with 2025 base fees confirmed and invoicing set to begin in October. Large producers must report data and cover the full cost of household packaging waste collection and recycling. Revenues will be ringfenced to local authority recycling services, with any underspend clawed back. From mid-2026, modulated fees will reward recyclable packaging formats. 4 Eyes Ltd helps businesses stay compliant, calculate exposure, and prepare for modulation. Contact us to understand how EPR impacts your supply chain. #EPR #PackagingWaste #Compliance #4EyesLtd

Improtant changes to the International One Stop Shop.

Progress towards UK US trade deal.

Gibraltar agrees with Spain to end VAT free status by 2028 in return for no hard border.

From 1 January 2025, private schools in the UK must charge 20% VAT on both tuition and boarding fees, with anti-forestalling rules applying from 29 July 2024. Some have asked if the reduced VAT rate for long-stay accommodation (after 28 days) could apply to school boarding. The answer is no: that relief is strictly for hotels and similar establishments in the hospitality sector. Boarding schools do not qualify, so full VAT applies regardless of how long a pupil stays.

Getting customs and excise compliance right isn’t just about ticking boxes—it’s about protecting your business from risk and inefficiency.

Whether you're moving high-value industrial goods or regulated consumer items, 4 Eyes Ltd provides the insight and operational expertise to keep your shipments compliant, efficient, and penalty-free.

Chages announced to UK customs regime.

Great opportunity to sell spirits to the UK market.

Global trade faces growing uncertainty as the US escalates tariff measures, prompting retaliatory actions and fears of a trade war. Protectionist policies may hurt innovation, raise prices, and disrupt markets worldwide. The UK, caught in the crossfire, must navigate complex challenges while weighing its response and trade strategy.

Since 1 January 2025 VAT has been due on all supplies of education and vocational training provided by private schools in the UK. VAT is also due on related supplies of boarding services.