HMRC have published Revenue and Customs Brief 1 (2024): ‘Live web streaming of funeral services’. This brief clarifies HMRC’s position on the VAT treatment of live web streaming of funeral, burial, or cremation services.
Background
- Under Group 8 of Schedule 9 VATA 1994 burial and cremation services are exempt from VAT, including:
- The disposal of the remains of the dead.
- The making of arrangements for, or in connection with, the disposal of the remains of the dead.
- Goods and services that are not directly connected with funeral, burial and cremation are not exempt.
- The VAT treatment of live web streaming is determined based on its direct connection to funeral, burial and cremation services.
- In Revenue and Customs Brief 1 (2024), HMRC confirms that the supply of live web streaming:
- By an undertaker, cemetery or crematorium operator of funeral, burial or cremation services are exempt from VAT.
- By a third party for a separate consideration will be subject to the standard rate of VAT (20%).
- Input VAT incurred by an undertaker, cemetery or crematorium operator on the cost of providing live web steaming is not normally recoverable.
Next steps
- Undertakers, cemetery and crematorium operators should treat the supply of live web streaming as exempt.
- Third parties should treat the supply of live web streaming as standard-rated.
- Error corrections should be made where VAT has been incorrectly charged or claimed.
Useful guides on this topic
A beginner's guide to VAT
Where do I start? What is VAT? Who has to register for VAT? What rate should I charge? How do I calculate VAT? When are my VAT filing obligations?
Errors: VAT how to correct.
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?
External links
Revenue and Customs Brief 1 (2024): Live web streaming of funeral services
