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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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…

VEG VAT transfer pricing paper

The European Commission to have further discussions on the possible VAT implications of transfer pricing

carolineheath 9 May 2018 No comments

The European Commission has issued a new working paper asking for the views of the VAT Committee on the subject of the possible VAT implications of transfer pricing rules.  This follows discussions on the matter within the VAT Expert Group (VEG) resulting in their adoption of a paper on the topic for discussion.  In this…

CJEU hire purchase case

Surprise AG opinion in Volkswagen Financial Services (UK) Ltd vehicle hire purchase agreement case

carolineheath 4 May 2018 No comments

The Advocate General’s (AG) opinion in the Volkswagen Financial Services (UK) Ltd (VWFS) Court of Justice of the European Union (CJEU) case was released on 3 May 2018. In a surprise move the AG has held that in his opinion the current UK VAT treatment of vehicle hire purchase agreements is incorrect. What was the…


Businesses should prepare now for the August launch of HMRC’s Customs Declaration Service

carolineheath 4 May 2018 No comments

In August 2018 HMRC will begin a phased launch of the Customs Declaration Service (CDS). UK businesses that currently import or export goods outside the EU will need to prepare now for using the new service to declare these goods, due to revised and additional data requirements. Depending on the outcome of Brexit, UK businesses…

VAT fraud

HMRC calls on online marketplaces to sign agreement tackling VAT fraud

carolineheath 26 April 2018 No comments

HMRC is asking all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud and errors taking place on their platforms. The agreement follows the Public Accounts Committee recommendation to put in place an agreement to set out collaborative working arrangements between HMRC and online marketplaces. The agreement To assist HMRC in tackling online…

rbcVAT growth

New Milestone Achieved in rbcVAT Limited’s Growth

carolineheath 5 April 2018 No comments

rbcVAT Limited Collaboration Agreement with Andersen Global rbcVAT Limited is pleased to announce a major step in the firm’s growth through a Collaboration Agreement with Andersen Global, at the same time as welcoming three new members to the team. Andersen Global was established in 2013 by U.S. member firm Andersen Tax LLC. It is an…