Highlights
- Changes to VAT penalty regime delayed until 2023
- HMRC issued guidance on Early termination payments and Compensation
- April 1, 2022
Other recently posted newsitems on the UK
Bad debt
- Bad Debt Relief: The Regency Factors case
- Bad Debt VAT Claims – Correct Record Keeping Process
- Factoring and Bad Debt Relief– procedural/record keeping requirements
- Unusual accounting system denies VAT bad debt claim
Brexit
- Brexit and Returns of Goods
- Brexit One Year On – What Do We Know?
- Brooks: moving back to the UK post-Brexit – FTT
- The Benefits of Brexit: How the UK is taking advantage of leaving the EU
- The Brexit effect revealed: Customs duties rise by 64%
- UK goods import Brexit checklist since Jan 2022
Customs
- ‘Rule of Origin’ Brexit rule starts to bite: UK customs duties jump 64 per cent in a year to record £4.5bn
- 1 January 2022 changes for EU imports to the UK mainland
- Businesses encouraged to have their say on future of customs
- Changes to country and commodity codes in 2022
- ECJ C-607/20 (GE Aircraft Engine Services) – AG Opinion – Issue of retail vouchers to employees
- EU Commission Notice (TAXUD) on changes in customs procedures between the EU and the United Kingdom (UK), which will enter into force in 2022
- HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021
- HMRC Guidance Claiming preferential rates of duty between the UK and EU
- HMRC Guidance: Movements to temporary storage facilities
- HMRC Statutory guidance: Notices made under the Customs Regulations 2019 from 1 January 2022
- HMRC Statutory guidance: Notices made under the Taxation (Cross-border Trade) Act 2018
- Import and export of goods between the UK and the EU: updates to the Border Operating Model
- Minutes of the 117th Joint VAT Consultative Committee (JVCC) meeting held on 27 September 2021
- Origin of Goods – Claiming Relief on Trade Between the EU and UK
- Policy paper Revenue and Customs Brief 4 (2022): end-customer claim refunds of VAT wrongly charged
- UK Brexit goods valuation for customs and VAT
- UK importers reminded to use correct European country code on customs declarations
- UK The Customs (Amendment) (EU Exit) Regulations 2022Customs (Amendment) (EU Exit) Regulations 2022
- Update on Application of UK Customs Controls from 1 January 2022
- Use the New Computerised Transit System
- UK Customs Duty Increase
Deduction
- Hotel granted the luxury of VAT recovery on a sale of shares to raise funds
- Hotel La Tour – FTT decides that VAT on professional fees in connection with a share sale is recoverable as input tax
- Input VAT on delivery charges was not recoverable
- VAT Recovery on Cars and Motor Expenses – Part 2
- VAT recovery on deal costs – selling shares to fund ‘downstream’ taxable activity
- VAT Recovery on EV Charging costs – “Range Anxiety” continues
- Why can’t I recover VAT on business invoices?
Early termination & Compensation
- Court ruling adds to doubts about HMRC’s VAT policy on early termination fees
- Early termination and compensation payments
- HMRC finalises guidance on VAT treatment of compensation and termination payments
- HMRC Revenue and Customs Brief 2 (2022): VAT early termination fees and compensation payments
- HMRC updates VAT policy on early termination charges and compensation payments
- Latest on early termination and compensation payments
- VAT and compensation – the next (and final?) chapter
- VAT on break payments: to pay or not to pay?
- VAT on early termination and compensation payments
ECJ
- ECJ C-156/20 (Zipvit Limited) – Judgment – Deduction of input tax is not possible without possession of an invoice stating the VAT
- Flashback on ECJ Cases – C-310/11 (Grattan) – Mail-order agent’s credit does not lead to a reduction in tax base
E-Commerce
- HMRC Guidance: Completing a One Stop Shop VAT Return
- HMRC Guidance: Pay the VAT due on your One Stop Shop VAT Return
- HMRC Policy paper VAT (Distance Selling and Miscellaneous Amendments) Regulations 2021 and VAT (Distance Selling and Miscellaneous Amendments…
- Online Sales Tax: Policy Consultation
- UK 1% Online Sales Tax consultation to cut high street retailers’ business rates
- UK considers 1% Online Sales Tax (OST) for e-commerce
- UK HM Treasury Launches Consultation for Online Sales Tax to Help Rebalance Taxation of the Retail Sector
Environment
- Deposit Recycling Scheme – VAT issue for scheme to encourage recycling
- HMRC internal manual: VAT Energy-Saving Materials and Grant-Funded Heating Supplies
Excise
Exemption
- Dilapidations to remain VAT free
- Dog grooming courses not VAT exempt
- Evidence required for exports (Tribunal)
- HMRC internal manual: VAT Partial Exemption Guidance
- Hostel accommodation for the homeless – exempt or VATable?
- JUNJIE LIU AND ZHE LI: zero-rating – whether evidence of export
- Rishi Sunak urged to scrap VAT on defibrillators
- Supply of rooms to beauticians: VAT exempt
Exports
- HMRC Guidance: Exports, sending goods abroad and charging VAT
- What Export Evidence is needed to support VAT Zero Rating?
Flat rate scheme
- HMRC Notice VAT Notice 733: Flat Rate Scheme for small businesses
- UK HMRC Revenue and Customs Brief on Postponed VAT Accounting and Businesses Registered under the Flat Rate Scheme
Free trade agreements
- HMRC Guidance: UK trade agreements with non-EU countries
- HMRC Policy paper UK approach to negotiating a free trade agreement with India
- New Zealand signs historic free trade deal with the United Kingdom
Importation
- Get your postponed import VAT statement
- HMRC Guidance: Apply for an account to defer duty payments when you import or release goods into Great Britain
- HMRC Policy paper: Revenue and Customs Brief 3 (2022): postponed VAT accounting and businesses registered under the Flat Rate Scheme
- Importing from and re-exporting union goods to the EU – flowchart (accessible version)
- Postponed VAT Accounting in the UK: what it is and how to use PVA
Interest
Intrastat
Invoice
- Sequential invoice numbering for tax invoices
- What is the information to be mentioned on an invoice in the UK?
Liability to pay VAT
- UK Postponed Import VAT Accounting
- HMRC Guidance: Complete your VAT Return to account for import VAT
NFT
- UK Tax Authority Makes First NFT Seizure In VAT Fraud Case
- British tax authorities seize NTFs for the first time in VAT fraud case
Other
- Fulfilment House Due Diligence Scheme registered businesses list
- Future of VAT in the UK survey
- Guernsey 5% GST implementation faces opposition
- Guernsey politicians rebel against GST proposals
- HMRC – Notice VAT Notice 48: Extra Statutory Concessions
- HMRC Guidance: Agent Update: issue 93
- HMRC Guidance: Investment gold coins (VAT Notice 701/21A)
- HMRC to close its VAT Helpline on Fridays, 25 February to 25 March
- Open/Technical consultation: Uncertain Tax Treatment guidance
- Owners of Alton Towers and Cadbury World urge Government to pull back on VAT hike
- Reflections on the first year of ‘Future of VAT in the UK’
- Self assessment taxpayers must declare COVID grants on tax returns
- Treasury warned of £185m VAT threat to deposit return schemes
- UK VAT – Cash Flow Planning
- VAT treatment of payment to exercise break clause
Plastic Packaging Tax
- HMRC Collection: Plastic Packaging Tax
- HMRC Guidance: Check when you must register for Plastic Packaging Tax
- HMRC Guidance: Examples of packaging in and out of scope of Plastic Packaging Tax
- Necessary activities due to the new UK plastic packaging tax starting in April 2022
- Plastic Packaging Tax – key facts
- Plastic Packaging Tax (General) Regulations 2022
- Plastic packaging tax anomalies may cause problems for businesses
Rate
- Calls for VAT reduction on Retro Fit Insulation for UK Homes
- More than 250 hospitality bosses call for VAT freeze as diners hit by rising costs
- Parliamentary Bill: Children’s Clothing (VAT) Bill
- Protein drinks are standard rated (they are not “food”) although they “deliver nutrition” to consumers and are derived from milk, which is itself zero rated.
- Rabbits are zero-rated, even if sold as pets. Sales of pets are standard rated.
Refund
Reporting
- Completing a VAT return: guidance for businesses that trade worldwide
- HMRC Guidance: How to fill in and submit your VAT Return (VAT Notice 700/12)
- HMRC urges UK VAT registered businesses to sign up for Making Tax Digital for VAT before April 1, 2022
- Making Tax Digital for VAT in 2022
- Making Tax Digital for VAT is coming – are you ready?
- Making Tax Digital for VAT: service availability and issues
- MTD VAT: fully compatible or bridging software?
- Research: Impact of Making Tax Digital for VAT
- UK warns 1.1million taxpayers on 1 April 2022 MTD changes
- Will digital tax reporting increase HMRC’s use of CCO powers?
Tax authorities
- Uncertain Tax Treatment (UTT) – New HMRC Regime for Larger Businesses
- What Triggers a VAT Inspection? How to Remain Safe?
Tax procedure
- Cantina Levorato: delay between making and notifying assessments – FTT
- HMRC Guidance: Updates on VAT appeals
- HMRC Guidance: Use Alternative Dispute Resolution to settle a tax dispute
- HMRC internal manual: VAT Default Surcharge Officer’s Guide
Taxable amount
Taxable person
Taxable transaction
- Car Boot Pitches – VAT treatment of pitch income
- Caravan dealers & caravan/lodge park owners – could you be due a VAT windfall?
- EU Impact lingers in VAT case for a Dog Groomer
- HMRC internal manual: Transfer pricing: operational guidance: interaction with indirect taxes: interaction with VAT
- Hostel accommodation to homeless person is supply of sleeping accommodation in a “similar establishment” to a hotel
- Is room hire subject to VAT? – The Errol Willy Salons case
- Is your room rental subject to VAT?
- Legal victory for Errol Willy Salon over HMRC additional VAT charge for spare room rentals
- Non-economic activity – VAT’s the problem?
- Residential Build to Rent – VAT
- Rufforth Park Ltd.: Car boot sale pitch – whether the leasing or letting of immoveable property – whether additional services provided
- UK VAT on Yachts – Changes to Returned Goods Relief Have Become UK Law
- VAT On Holiday Accommodation
- VAT on hostels and guest rooms
- VAT was not due on the termination of a lease Topics (Ventgrove Limited v Kuehne and Nagel Limited)
- VAT, TOGCs and selling/buying a business
- Ventgrove – Court of Session decides that no VAT is due on payment under a lease break clause
VAT grouping
- HMRC Policy paper: Revised guidance on dealing with VAT grouping registration
- Upper Tribunal – HSBC Electronic Data Processing (Guangdong) Ltd – VAT grouping rules -interpretation of “established” and “fixed establishment”
- VAT grouping, UK presence and protection of revenue powers
VAT penalties
- Changes to VAT penalty regime delayed until 2023
- Deferral of new VAT penalty and interest rules to 2023
- Delay of new penalty regime
- HMRC guidance on VAT penalty reform timelines
- Implementation of the new VAT penalty regime postponed until January 2023 – what does it mean for your business?
- Postponement to introduction of Penalty Reform for VAT
- UK VAT penalty regime reform delayed till 1 Jan 2023 due to IT issues
- When do points-based penalties apply?
VAT Rate
- Labour challenges Tories to scrap VAT on energy bills for a year
- Rishi Sunak will not make promised VAT cut in energy bills, minister says
- Tory suspended for voting to cut VAT on energy bills – despite Boris Johnson backing idea
- Treasury urged to remove VAT on energy efficiency measures
- UK considers cut on domestic energy reduced VAT rate from 5% to 0%
- UK not persuaded by VAT cut on energy bills, minister says
- Boris Johnson risks losing Tory voters by keeping VAT on energy bills, poll reveals
- Boris Johnson U-turns over VAT on energy bills
- Boris told to use Brexit freedoms to scrap VAT on energy bills
- VAT cut for EV drivers without off-street parking
- VAT Rates—How Important Are They?
VAT registration
- HMRC cancelled VAT registration: Late appeal refused
- HMRC delays: VAT group registrations and option to tax
- HMRC Guidance: Group and divisional registration (VAT Notice 700/2)
- HMRC internal manual: VAT Deregistration
- Quick Tips: Registering for Value-Added Tax (VAT)
- Should I Register for VAT?
- Splitting a business to avoid VAT registration: Disaggregation
- VAT Group Registration applications – VAT accounting and reporting pending HMRC’s response
See also
