VAT news

Welcome to our VAT blog area – we talk about the things that are important to our clients and the essential VAT information we think you need to know.
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Businesses urged to register for Making Tax Digital before August

carolineheath 17 July 2019 No comments

Businesses with an annual turnover above £85,000 are being urged by HM Revenue and Customs (HMRC) to sign up to Making Tax Digital (MTD) before the 7 August VAT filing date. Many of the 1.2 million businesses affected by the MTD rules, which became law for VAT periods starting on or after 1 April, will…

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HMRC creditor

HMRC to be moved up the creditor hierarchy in insolvency cases

carolineheath 17 July 2019 No comments

From April 2020, HMRC will become a secondary preferential creditor in insolvency proceedings, giving them priority in the recovery of VAT and certain other debts owed to them. Background Currently, taxes paid by employees and customers do not always go to funding public services if the business temporarily holding that money goes into insolvency before…

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Construction site

HMRC publishes guidance on new VAT domestic reverse charge for the construction industry

Elizabeth Wilson 18 June 2019 No comments

HMRC has published new guidance on the VAT domestic reverse charge for building and construction coming into effect on 1 October 2019. Background In a bid to tackle fraud in the construction industry, HMRC proposed the introduction of a domestic reverse charge in 2017.  A consultation on draft legislation was held last year (see our…

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EESC Opinion definitive VAT

EC urged to roll out a common definitive VAT system for services and goods

Elizabeth Wilson 23 May 2019 No comments

The European Economic and Social Committee (EESC) has published its Opinion on the European Commission’s (EC) proposal for a Council Directive introducing the detailed technical measures for the operation of the definitive VAT system, in which it has urged the EC to explore how a common system for both services and goods can be rolled…

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EC launches TNA

EC launches Transaction Network Analysis to recoup billions in VAT fraud

Elizabeth Wilson 21 May 2019 No comments

On 15 May 2019, the European Commission launched the Transaction Network Analysis (TNA) tool, a new system to combat cross-border VAT fraud. The system will allow Member States to jointly process and more rapidly exchange VAT data, resulting in earlier detection of suspicious networks. Background The EC has consistently looked to put in place a…

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European Commission

EU VAT reform – VAT Expert Group comments on the “quick fixes”

carolineheath 1 May 2019 No comments

At their last meeting the VAT Expert Group (VEG) discussed the EU “quick fixes” legislative package which is due to be implemented from 1 January 2020. What are the “quick fixes”? The short-term quick fix measures are designed to improve the day-to-day functioning of the current VAT system, until the definitive regime has been fully agreed…

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EU proposes VAT exemption for EU armed forces

carolineheath 1 May 2019 No comments

The European Commission has adopted a proposal to exempt supplies to armed forces from VAT and excise duties.  The exemption will apply when forces are deployed outside their own Member State and take part in a European defence effort. Supplies to armed forces participating in a NATO defence effort can already benefit from such exemptions.…

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Detailed rules online sales of goods

EU Member States agree detailed measures to improve VAT collection on online sales

Elizabeth Wilson 5 April 2019 No comments

On 12 March the European Commission (EC) announced that agreement had been reached by EU Member States on detailed measures required to simplify VAT rules for sales of goods online, ensuring that online marketplaces play their part in the fight against tax fraud. Background The decision taken in March by EU Economic and Financial Affairs…

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BREXIT

HMRC announces extension of Transitional Simplified Procedures in the event of a No Deal Brexit

carolineheath 27 March 2019 No comments

HMRC has announced further details of measures to support businesses with new customs requirements, if the UK leaves the EU without a deal. What has changed? HMRC is extending arrangements already announced (see our earlier blog article) for traders to use Transitional Simplified Procedures (TSP) which will make importing easier. This includes: an extension of the…

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HMRC investigation

What to expect during an HMRC compliance check

carolineheath 27 March 2019 No comments

HMRC have recently updated their factsheet CC/FS1a About compliance checks to include more detail on what information they might request during a compliance check.  In this blog article we remind businesses of what to expect during an HMRC compliance check and how they can help make the process run as smoothly as possible. What is…

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