- UK VAT is complicated and costly for taxable persons to comply with
- A study conducted in 2018-19 by Australian and international universities with KPMG sheds light on the complexity of UK VAT
- The complexity lies in VAT policy goals incorporated in legislation, not administration
- Troublesome concessions, such as reduced rate, zero rate, and exemptions, contribute to complexity
- Disputes arise over distinctions between different tax treatments for supplies
- Additional costs for taxpayers making bundled sales with multiple elements
- Exemptions can lead to compliance burden in calculating input tax deductions for partially exempt businesses
- Special regimes for SMEs, such as less frequent filing, optimal cash basis accounting, and flat rate scheme, add to compliance burden.
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- Supreme Court Decision Mandates Prudential to Pay VAT on £9.3 Million Success Fees
- UK Supreme Court Rules on VAT Grouping and Time of Supply in Prudential Case
- High Court Rules in Favor of Hotelbeds UK on Input Tax Recovery Without VAT Invoices
- HMRC Updates Notice 700/45: Correcting VAT Errors, Claims, and Penalties Guidance Revised
- HMRC Updates VAT Notice 700/45: New Guidelines for Correcting Errors and Claiming Refunds
