17 April 2024| CATEGORIES: Brexit, UK VAT legislation| TAGS: Brexit, HMRC policy, Removal of supremacy of EU law
HMRC have published Revenue and Customs Brief 4 (2024) which explains how VAT and excise legislation should be interpreted in light of the Retained EU Law (Revocation and Reform) Act 2023, and
the bespoke solution introduced for VAT and excise in Finance Act 2024. The Retained EU Law (Revocation and Reform) Act 2023 removes the supremacy of EU law in the UK.
10 April 2024| CATEGORIES: HMRC guidance, Non-established taxable persons, UK, VAT registration| TAGS: HMRC, NETP, VAT, VAT registration
HMRC have amended VAT registration information relating to non-established taxable persons (NETPs) in VAT Notice 700/1. An NETP is any person who does not have a UK establishment. The rules regarding VAT registration can be complex, especially for overseas sellers of goods via an online marketplace.
7 March 2024| CATEGORIES: Budget, VAT registration threshold, VAT-free shopping| TAGS: Spring Budget 2024, tax-free shopping, VAT registration threshold
The Chancellor of the Exchequer, Jeremy Hunt, presented his Spring Budget to the House of Commons on 6 March 2024. This article sets out the main points of interest from a VAT perspective.
6 March 2024| CATEGORIES: customer service, HMRC| TAGS: customer service, HMRC, PAC report
A Public Accounts Committee (PAC) report into HMRC performance in 2022-23 has concluded that the level of customer service at HMRC “has reached an all-time low”. The Committee received an unprecedented number of written submissions about HMRC’s performance, demonstrating the extent of taxpayers’ dissatisfaction over the quality of services and the impact on businesses.
27 February 2024| CATEGORIES: e-Commerce, EU VAT, HMRC, IOSS| TAGS: e-commerce, HMRC, IOSS, Northern Ireland
From 1 March 2024, businesses in Northern Ireland or Norway, which sell low-value goods imported from outside the EU and Northern Ireland to customers inside those regions can register with HMRC to use the import one stop shop (IOSS) system. Currently, Northern Irish businesses are only able to register for the IOSS in an EU member state.
16 January 2024| CATEGORIES: Digital Reporting Requirements, e-invoicing, EU VAT, VIDA| TAGS: DRR, e-invoicing, EU, platform economy, single VAT registration
A year after the EU VAT in the Digital Age (VIDA) proposals were published it seems increasingly likely that the introduction of the measures will be delayed. The original timetable had intended the measures be approved by the end of 2023, with implementation in stages between 1 January 2025 to 1 January 2028. The EU Parliament has already voted in favour of a one-year postponement of all three ViDA pillars. The DRR and e-invoicing aspects are likely to be delayed until 2030 or later.
27 October 2023| CATEGORIES: EU VAT Gap, VAT compliance| TAGS: EU, Tax gap, VIDA
The EU Commission has published the annual VAT Gap study, which measures the difference between theoretically expected VAT revenues and the amount actually collected. The report shows that Member States lost around €61 billion in VAT in 2021, compared to €99 billion in 2020. The lost revenue mainly relates to VAT fraud, evasion and avoidance, …
Continue reading “EU VAT Gap reduced by €38 billion in 2021”
13 October 2023| CATEGORIES: e-Commerce, high-volume addresses, HMRC campaign| TAGS: e-commerce, NETPs, online marketplace rules
The use of high-volume addresses as the principal place of business has increased in recent years. Businesses registered for VAT at a high-volume address will be asked by HMRC to prove they are established in the UK.
Many of these addresses are being used by overseas established business and are potentially being used by some traders to avoid being treated as a Non-Established Taxable Person (NETP) by online marketplaces.
As a result, some online marketplaces are not collecting and paying the VAT due on behalf of the trader.
29 September 2023| CATEGORIES: CDS, CHIEF, Customs, Customs declarations, Exports| TAGS: CDS, Customs, Export declarations
HMRC’s Customs Handling of Import and Export Freight (CHIEF) system is being replaced by the Customs Declaration Service (CDS). The last day to make import declarations through CHIEF was 30 September 2022. CHIEF was due to be closed for export declarations from 30 November 2023 (extended from the original date of 31 March 2023). However, HMRC have now announced that the deadline has been further extended, with a phased approach to implementation.
22 September 2023| CATEGORIES: domestic fuel, HMRC campaign, reduced VAT rate| TAGS: de minimis test, energy suppliers, HMRC campaign, reduced VAT rate
HMRC have launched a ‘one-to-many’ letter campaign aimed at energy suppliers, regarding the reduced VAT rate for supplies of fuel and power. HMRC are asking that suppliers review their systems and processes for accounting for VAT, to ensure they are accounting for VAT in line with HMRC’s published guidance.
