HMRC Advice Notice VBNB41720 states:
Judgment debtors pay the cost of sheriffs' enforcement fees , but the supplies are always made to the creditors. VAT invoices must be addressed to and sent to the creditors . Any documents given to debtors must state clearly that they are not VAT invoices.
This means VAT should not be charged to you if the creditor is VAT-registered. In such cases, the creditor can reclaim the VAT from HMRC, not pass it on to you.
If you have been charged VAT unlawfully by a bailiff acting for a VAT-registered creditor, you can report it to HMRC. Do this using the VAT fraud reporting page .
Be sure to include the following:
1. A copy of your bailiff's letter or notice showing the VAT amount.
2. Evidence that the creditor is VAT-registered (e.g., invoice, company number).
3. A link or copy of VBNB41720 guidance .
You can also call the HMRC VAT fraud hotline: 0800 788 887
Before 2014, VAT could be passed to the debtor under earlier regulations. This is no longer lawful.
Paragraph 10 of Schedule 1 of the Enforcement of Road Traffic Debts (Certificated Bailiffs) Regulations 1993 stated:
10 In addition to any authorised fees, the amount of value added tax payable may be passed on to the debtor by adding an equivalent amount to the total due.
If you paid VAT in error, you can recover the amount through the small claims court . A claim under the Consumer Rights Act 2015 or Torts (Interference with Goods) Act 1977 may apply.