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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
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Special considerations for certain registrations: terminal markets

Brokers and dealers who operate within terminal markets under the provisions of the VAT Act 1994, section 50 and the Value Added Tax (Terminal Markets) Order 1973 (as amended) are normally liable for registration.

Under the above provisions, supplies:

  • between members of certain commodity markets, and
  • by members of these markets to non-members of the market

are zero-rated where there is no physical delivery of any commodities (and, in some cases, where there is physical delivery).

Supplies of broker services by market members are also zero-rated. It is likely that persons involved in dealing on named markets will be making wholly zero-rated supplies and will be keen to register to recover deductible input tax.

Please refer to Notice 701/9 for more information about Terminal Markets. In cases of doubt or difficulty, please consult the Deductions and Financial Services policy team.