- HMRC has published RCB 7 (2024) on the VAT treatment of voluntary carbon credits
- Currently, HMRC considers the supply of voluntary carbon credits to be outside the scope of VAT
- Changes in the market, including secondary market trading, have led HMRC to announce that from 1 September 2024, the sale of voluntary carbon credits will be subject to VAT at the standard rate in the UK
- Certain activities related to voluntary carbon credits remain outside the scope of VAT, such as the first issue by a public authority and donations to projects
- Voluntary carbon credits will be capable of zero rating under the Terminal Markets Order from the same date
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
