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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Crackdown on online sellers

HMRC crackdown on VAT evasion by online overseas sellers recoups over £200m

Elizabeth Wilson 16 January 2019 No comments

HMRC’s crackdown on online overseas sellers has resulted in an additional £205 million of VAT being declared since new rules to tackle tax evasion were introduced in 2016, according to a recent press release. Joint and several liability measures New joint and several liability rules for online marketplaces were introduced in September 2016 (see our…

QMV debate for tax policy

European Commission launches debate on a gradual transition to qualified majority voting for decision-making in EU tax policy

carolineheath 16 January 2019 No comments

The European Commission has started a debate on reforming decision-making for areas of EU  taxation policy, which currently requires unanimity among Member States. This unanimity often cannot be achieved on crucial tax initiatives and can lead to costly delays and sub-optimal policies. The European Commission’s Communication suggests a roadmap for a progressive and targeted transition to qualified…

Customs training grant

Government grants available for businesses that complete customs declarations

Elizabeth Wilson 15 January 2019 No comments

In “Grants for businesses that complete Customs declarations”, HMRC explains that in preparation for the UK’s exit from the EU, certain businesses can apply for two grants to support training and increased automation, under an £8 million government investment. Background In a “no deal” Brexit scenario, the free movement of goods between the UK and…

Brexit jigsaw HMRC letters

HMRC sends letter to businesses with actions to be taken NOW to prepare for a potential no deal Brexit

carolineheath 10 January 2019 No comments

HMRC has published a further letter on GOV.UK to help businesses that trade with the EU get ready to deal with customs in the unlikely event that the UK leaves the EU without a deal on 29 M‌ar‌c‌h 2019. There is one version of the letter for businesses based in England, Scotland and Wales, and…

split payment

Consultation outcome of split payment mechanism to combat online VAT fraud

Elizabeth Wilson 20 November 2018 No comments

HM Treasury and HMRC have published the outcome of their consultation on an “Alternative method of VAT collection – split payment” concerning potential changes to the collection of VAT on online sales of goods. The consultation The consultation had sought views on possible options for a split payment mechanism that would allow VAT to be…

no deal partnership pack

Customs, excise and VAT: ‘No deal’ support pack for businesses

Elizabeth Wilson 8 November 2018 No comments

If the UK leaves the EU without a deal on 29 March 2019, there will be immediate changes for every business that trades with the EU.  UK businesses will have to apply customs, excise and VAT procedures to goods traded with the EU, in largely the same way as the current procedures for goods traded…

Budget 2018

Autumn Budget 2018 – VAT Aspects

carolineheath 30 October 2018 No comments

Chancellor Philip Hammond presented the Autumn Budget 2018 yesterday.  The main VAT-related measures announced were: VAT registration threshold The VAT registration threshold is to be maintained at the current level of £85,000 for a further 2 years until April 2022. It had previously been frozen at that level until April 2020 in Autumn Budget 2017.…

VAT technical measures

ECOFIN: Progress achieved on the road to a reformed EU VAT system

carolineheath 11 October 2018 No comments

At this month’s ECOFIN meeting of EU finance ministers in Luxembourg agreement was reached on a number of measures designed to improve the day-to-day running of the EU VAT system, ahead of more far-reaching reform. Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs said: “New figures released by the Commission just weeks ago…

Global Tax Reforms

OECD Tax Policy Reforms 2018: The key VAT changes worldwide

Elizabeth Wilson 5 October 2018 No comments

In September, the Organisation for Economic Co-operation and Development (OECD) published its 2018 report on Tax Policy Reforms: OECD and Selected Partner Economies, summarising recent tax policy reforms in the 35 OECD members and in Argentina, Indonesia and South Africa. The key VAT findings in the report, which are analysed in more detail below, are:…

EU digital services VAT threshold

New EU VAT threshold for B2C digital services from 2019

Elizabeth Wilson 20 September 2018 No comments

HMRC has launched a technical consultation on draft legislation covering two changes to the VAT treatment of business to consumer (B2C) supplies of digital services which were agreed by all EU member states in December 2017. The measures are being introduced to ease the administrative burden on businesses selling digital services across the EU, and…