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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Brexit EORI

UK Government Brexit no-deal plans – EORI auto-enrolment

carolineheath 23 August 2019 No comments

EORI auto-enrolment The government has announced it will start to automatically enrol UK firms in the customs system as it speeds up its preparations for a no-deal Brexit.  The move will enable UK firms to continue to trade with EU member states after the UK leaves the EU. HMRC said all VAT-registered firms in the…

Crackdown on online sellers

E-commerce operators impacted by the abolishment of ‘DDP’

Elizabeth Wilson 9 August 2019 No comments

The International Chamber of Commerce (ICC) is preparing an update to Incoterms 2010, which is expected to include the elimination of the trade term DDP (Delivery Duty Paid), a move that will impact e-commerce operators across the globe. What are incoterms? ‘Incoterms’ stands for ‘international commercial terms’, a set of internationally recognised standard trading terms…


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…

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…

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…

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…

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…

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…


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.…

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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