VAT and the High cour
Its not exactly a new subject, but there is still a lot of misunderstanding about this. Leading to many initiating costly and unnecessary Detailed Assessment Hearings.
The current advice given in the government briefing notice refers to fees paid to the HCEO for their services, not by debtors who pay fees to licensed self employed EAs operating under a HCEO power.
In other words, the creditor, who pays the HCEO for their services will pay vat, because the HCEO can offset it against their output VAT. This is the usual procedure.
If the creditor is VAT registered he will also be able to reclaim it by offsetting it against his output tax in the usual way.
This is where the confusion arises. It is not about the payment of VAT by debtors to enforcement agents, which is calculated on proceeds. That is well understood, and decided.
Debtors are liable.
.Seek proper advice if you are unsure.