In Revenue and Customs Brief 6 (2018): VAT exemption for all domestic service charges, HMRC announces that it considers that some supplies of property-related services by property management and similar businesses may not have been taxed correctly under the terms of Extra Statutory Concession 3.18. HMRC will expect all suppliers of such services to ensure that they apply the correct VAT treatment with effect from 1 November 2018. HMRC has also issued the guidance ‘Applying the correct VAT liability on residential domestic service charges (VAT information sheet 07/18)’ which explains how to apply the correct liability to domestic service charges going forward.
