VAT news

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OTS VAT Report

OTS publishes report on the UK VAT system

carolineheath 18 January 2018 No comments

The Office of Tax Simplification (OTS) published its final report on the UK VAT system in November 2017.  This follows the first major review of the VAT system in over 40 years. The report contains 23 recommendations for simplifying the tax. Why was the review conducted? At the 2016 Autumn Statement, the Chancellor of the…


The first GCC States introduce VAT

carolineheath 5 January 2018 No comments

Saudi Arabia and the UAE are the first GCC States to introduce VAT with effect from 1 January 2018. It is the first time the Gulf countries have introduced this type of levy and is a significant change for a region long accustomed to a tax-free environment. It is the latest measure introduced by Gulf…

HMRC Voucher consultation

HMRC consultation on new EU VAT rules for vouchers

carolineheath 2 January 2018 No comments

HMRC have opened a consultation on the new EU VAT rules for vouchers which will come into effect from 1 January 2019. The new rules are being introduced after the EU Vouchers Directive was adopted by the EU in June 2016.  Although the UK is in the process of negotiating its exit from the EU,…

VAT fraud

ECOFIN agree European Commission’s proposals for simpler and more efficient VAT rules for e-commerce

carolineheath 21 December 2017 No comments

The EU’s Economic and Finance Affairs Council (ECOFIN) have agreed a series of new measures to improve how VAT works for e-commerce in the EU, only a year after the Commission made its ambitious proposals. The new system will make it easier for consumers and businesses, particularly start-ups and SMEs, to buy and sell goods…


Making Tax Digital – New HMRC Consultation

carolineheath 20 December 2017 No comments

HMRC has launched a consultation on the proposed rules for VAT reporting under Making Tax Digital.  The new regulations are due to take effect from April 2019 for most VAT registered businesses. HMRC has published draft regulations, together with a draft explanatory memorandum and draft VAT Notice, for public comment. Full details of the consultation and…


Autumn Budget 2017 – VAT registration threshold frozen and online VAT fraud targeted

Gareth Bevan 5 December 2017 No comments

UK Chancellor, Philip Hammond, has now presented his first Autumn Budget.  The main VAT-related measures announced were: VAT registration thresholds In response to the Office of Tax Simplification’s report Value Added Tax: Routes to Simplification, the government will consult on the design of the threshold. In the meantime the registration threshold will be maintained at the…


New UK VAT laws apply to online marketplace traders

Gareth Bevan 27 October 2017 No comments

  New HMRC powers to tackle VAT non-compliant overseas businesses trading via online marketplaces   A strengthening of HMRC’s powers to tackle non-compliant overseas businesses selling goods to UK consumers via online marketplaces came into effect last week, following Royal Assent of Finance Bill 2016. Overseas businesses selling goods located in the UK via online…


EU seeks opinions on whether transfer pricing adjustments are subject to VAT

Gareth Bevan 27 October 2017 No comments

European Commission transfer pricing working paper The European Commission has issued a working paper asking the VAT Committee to consider whether transfer pricing adjustments carried out for direct tax purposes are within the scope of VAT. The VAT Committee is being asked to examine the potential VAT implications with the aim of providing legal certainty…


Spring Budget 2017 – VAT Headlines

Gareth Bevan 27 October 2017 No comments

Today Chancellor Philip Hammond presented the last Spring Budget. Future Budgets will be delivered in the Autumn. The main VAT-related measures announced in the Budget are: VAT Registration and deregistration thresholds From 1 April 2017 the VAT registration threshold will increase from £83,000 to £85,000 and the deregistration threshold from £81,000 to £83,000. VAT Use…


Office of Tax Simplification (OTS) Review of VAT

Gareth Bevan 27 October 2017 No comments

At the 2016 Autumn Statement, the Chancellor of the Exchequer and the Financial Secretary to the Treasury asked the Office of Tax Simplification (OTS) to conduct a review of VAT. The objective of the review was to see whether the VAT system was fit for purpose in the modern economy and to identify potential areas…