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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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…

Brexit jigsaw HMRC letters

HMRC sends ‘no deal’ Brexit guidance to thousands of UK VAT-registered businesses

Elizabeth Wilson 18 September 2018 No comments

HMRC has sent letters to 145,000 UK VAT-registered businesses that only trade with EU countries, advising on the impact of a ‘no deal’ Brexit. The letters explain the immediate changes to customs, excise and VAT procedures for UK businesses currently importing and/or exporting goods within the EU only, including the requirement to start completing customs…

ADR Alternative Dispute Resolution

Settling tax disputes with HMRC efficiently and cost effectively: Alternative Dispute Resolution (ADR)

Elizabeth Wilson 6 September 2018 No comments

Disputes between HMRC and business taxpayers can occur as a result of a misunderstanding or misinterpretation of the facts, incomplete information or a technical disagreement. The majority of cases are settled through mutual agreement. However, there are many long running tax disputes where attempts to work collaboratively have failed and a stalemate has been reached.…


In the event of a Brexit “no deal” scenario postponed accounting for import VAT on goods to be introduced

carolineheath 23 August 2018 No comments

Postponed accounting for import VAT will be introduced if the UK leaves the EU without a deal on 29 March 2019. The government has confirmed that this will apply both to imports from the EU and non-EU countries.  This would generate a cash-flow benefit for those businesses that currently have to pay import VAT on…

MTD pilot

HMRC publishes further guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT

Elizabeth Wilson 17 July 2018 No comments

HMRC has published VAT Notice 700/22 providing further guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT. This follows a consultation on the proposed rules for VAT reporting under Making Tax Digital (MTD), as reported in our earlier blog article. The new regulations are due to take effect…

Brexit Future Relationship

Brexit Update: Government publishes its White Paper on the future relationship between the United Kingdom and the European Union

Elizabeth Wilson 14 July 2018 No comments

The Government has published its much anticipated White Paper this week on its proposed future relationship between the United Kingdom and the European Union after the UK’s departure from the EU. The White Paper sets out a blueprint for the deal that it is seeking, which it intends to use as the basis for the…

Courthouse hammer US sales tax change

US Supreme Court landmark decision reverses longstanding rule on physical presence and sales tax which could have far reaching consequences for online businesses

Elizabeth Wilson 1 July 2018 No comments

In the South Dakota vs. Wayfair ruling of 21st June 2018, the Supreme Court of the United States has overturned a previous Supreme Court decision dating back to the 1960s stipulating that only businesses with a physical presence in a state were liable to collect sales tax on purchases by the state’s residents. The ruling…

Split payment

New VAT collection system proposed in HMRC consultation on VAT “split payments”

Elizabeth Wilson 26 June 2018 No comments

Following HMRC’s 2017 call for evidence seeking views on a split payment system for collecting VAT on online sales of goods, a formal consultation has been launched. The proposal effectively turns merchant acquirers and payment service providers (PSPs) into the collectors of merchants’ VAT liabilities. VAT would be extracted from online payments in real time…

new domestic reverse charge on certain construction services

HMRC consultation on draft legislation for new domestic reverse charge on certain construction services

carolineheath 20 June 2018 No comments

HMRC has opened a consultation on draft legislation for a VAT domestic reverse charge on certain construction services. The draft statutory instrument together with a draft explanatory memorandum and draft tax information and impact note are available here. Who should be interested in the consultation? The consultation will be relevant to sub-contractors and contractors carrying…

VAT technical measures

European Commission proposes final technical measures to create the EU Definitive VAT system

carolineheath 31 May 2018 No comments

The European Commission has proposed the detailed technical amendments to EU rules on value added tax (VAT) that supplement the proposed overhaul of the system to make it more fraud-resilient. The package of measures substantially modifies the rules relating to VAT, putting an end to 25 years of a ‘transitional’ VAT regime in the Single…