4 The rheal director of this software company also said bluntly that I do not know what your problem is, since any other law firm sends us a VAT invoice that has been sent to us. We found this last statement surprising. First of all, what does HMRC say? Well, a starting point is the VATSC92100 guide. It deals with the payment of the procedural costs of another party It begins by saying what is and is not subject to VAT and specifies that a turnover (for example. B a compromise agreement or a settlement agreement) obliging one party to be liable for the costs of others related to that turnover, falls within the scope of VAT, provided that the turnover is made. . . .