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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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…

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…