By understanding the principles behind European VAT you gain an understanding of how VAT works across all Member States. Not only that, but many non-EU territories base their equivalent tax on similar principles. The UK is an obvious example.

Other jurisdictions which have implemented VAT in recent years have also borrowed many of the underlying ideas. This can make it a really handy qualification to have if you are thinking about working internationally.

If you're an EMEA or Global Head of Tax - or aspire to be one - then VAT is likely to form a large part of the compliance work that is required worldwide (hello e-invoicing and real time reporting).

As indirect taxes are transactional, they infiltrate into every activity that the business has, does or will operate in.

While you are unlikely to need to be a VAT specialist in order to take on this role, it is invaluable to be able to identify situations where VAT could be an issue before it becomes a problem. If you are a direct tax specialist, then having VAT in your tax toolbox can set you apart from your peers and help drive your career forward.

There are few qualifications which can enable you to become a formally recognised VAT specialist. One is the CTA, which is a Level 7 (Master’s degree equivalent) qualification.

To complete the indirect tax route, at the time of writing, you would need to sit two advanced technical papers and one application case study as well as completing a (non-VAT) awareness paper along with accounting, law and ethics computer-based assessments to become exam qualified. It can be a long route to qualification and pass rates are typically low. Unless you pass all of the required CTA papers you gain no formal recognition.

When I did my CTA, I was convinced I would stay within the realm of corporate tax. As it was, I moved into a VAT team within two months of finishing my final CTA exam and never went back.

If you already hold an accounting or tax qualification it can complement those studies: whether you choose to study for one paper only or take on the full ADIT qualification over time.

When determining what the correct tax treatment is from a VAT perspective you have to really understand the detail of the transaction(s).

You have to get to grips with, among other things:

• who is doing what,
• who is being paid (and how much) for doing it,
• where is it taking place?

It is not all about Jaffa cakes and strawberry sandwiches. You get the chance to really get into the nitty gritty detail of what a business does.