Can VAT be reclaimed on HCEO fees?
by David Carter on 06 October 2011
Provided the High Court Enforcement Officer’s (HCEO) business is registered for VAT, then he will add VAT to his fees, costs and charges where applicable.
This then gives rise to the question of whether a VAT registered judgment debtor can recover input tax on those charges where VAT was applicable.
In general terms, a VAT registered entity may only recover input tax that relates to its taxable business supplies or services. HMRC has previously advised that as neither the creditor nor debtor is the recipient of these supplies or services they may not reclaim the input VAT.
As a result, there is no requirement for HCEOs or others in the enforcement industry to issue VAT invoices and it is advised that any document issued for this purpose should state that it is not a VAT invoice.
If a judgment debtor still believes he can reclaim input VAT from the HCEO’s invoice for enforcement against his VAT registered business, he is advised to seek clarification from his accountant and/or HMRC.
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Disclaimer: The statements and opinions expressed in this article are those of the author and do not necessarily reflect those of Sheriffs High Court Enforcement Ltd, trading as The Sheriffs Office. Sheriffs High Court Enforcement Ltd does not take any responsibility for the views of the author. The author will not be held responsible for any comments posted by visitors to this site. Please note that this article does not constitute legal advice. The author has used his best endeavours to make this article as accurate and complete as possible, but requests that the reader be aware that the law of England and Wales frequently changes. The author strongly advises the reader to take legal advice before embarking on any enforcement action.
