Can someone please confirm that VAT rate for services is 12% and for goods it's 21% ? If this is the case, why do solicitors charge 21% VAT on their services when looking after the legal process of selling/buying a house ? Also, mortgage brokers seem to charge 21% VAT on their services. Is this correct ? I'm sure there's a simple explanation for this but just a thought.
The 21% VAT rate applies to most services (and practically to all professional services) apart from a limited range of services (most notably construction, hairdressing etc) that are rated at 13.5%. There is no specific VAT rate for services as opposed to sales of goods, manufacturing etc.
I would have thought that services to procure specifally mortgages were not VAT'able. On the basis that commissions paid to brokers are in themselves VAT free.