To ask Her Majesty's Government whether the Taking Control of Goods (Fees) Regulations 2014 have ensured that VAT is no longer applied to debts enforced under a High Court judgment; and if not, what steps they will take to resolve this.
29 October 2019
Debt collection services carried out by High Court Enforcement Officers are subject to VAT according to the normal rules and any VAT due is payable by the creditor who receives the service. The debtor is not required to pay the VAT.
HM Revenue and Customs are working with the Ministry of Justice, which is responsible for the Taking Control of Goods (Fees) 2014 Regulations, to ensure that VAT rules continue to be applied correctly.