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V6.111 Accountants—liability of supplies and activities

Most accountants provide a range of services, many of which would not immediately be associated with the mainstream services such as audit and accountancy services. This diversity makes it necessary for an accountant to take particular care in deciding whether, when and how to account for VAT. Particular attention should be paid where accountants provide services such as corporate finance, which may qualify for exemption.

While most of an accountant's mainstream services will be fully taxable exempt activities can exist and may generate significant fee income. As a consequence, while it would be unusual for an accountant to have significant problems with VAT recovery it should not be overlooked.

An additional area where accountants must take care, is ensuring the correct 'place of supply' rules are applied, particularly in respect of services supplied to consumers outside the UK, as this type of service follows different rules than the 'usual' place of supply rules. Further details can be found below.