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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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…


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…

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…

MTD for VAT countdown

The countdown to 1st April has begun: Are you ready for the digitalisation of VAT?

Elizabeth Wilson 12 March 2019 No comments

With Making Tax Digital (MTD) for VAT coming into force in less than a month, businesses that have not yet decided on a software solution need to act now to meet the new digital requirements applicable from 1st April. As the timing coincides with the UK’s departure from the EU at the end of March,…

Mercedes Benz VAT case

HMRC change policy on VAT treatment of Personal Contract Purchases (PCP) following CJEU decision

carolineheath 6 March 2019 No comments

HMRC have issued Revenue and Customs Brief 1(2019): Change to the VAT treatment of Personal Contract Purchases which explains a change in policy following the European Court of Justice (CJEU) decision in Mercedes Benz Financial Services C-164/16 (MBFS). Previously HMRC regarded supplies made under such contracts as supplies of goods and a separate supply of…

Brexit Future Relationship

Brexit: HMRC simplifies importing from the EU as part of “no deal” preparation

Elizabeth Wilson 14 February 2019 No comments

HMRC has announced Transitional Simplified Procedures (TSP) for customs in order to ease the importing process should we leave the EU without a deal. The new arrangements will be available for at least the first year. What does TSP involve? HMRC has written to 145,000 VAT-registered businesses trading with the EU to inform them of…

MTD pilot

HMRC extends MTD for VAT pilot scheme to VAT groups

Elizabeth Wilson 17 January 2019 No comments

HMRC has extended its Making Tax Digital for VAT (MTD for VAT) pilot scheme to VAT groups, as well as to all businesses that are mandated to join MTD for VAT from April 2019. VAT groups are the first type of business from the minority of businesses that are mandated to join MTD for VAT…

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