- E-invoicing consultation announced for businesses to consider impacts
- Split payments, also known as “real-time extraction”, collect VAT on online sales and transfer it directly to HMRC
- HMRC keen to introduce split payments but face hurdles in implementation
- Prior Information Notice and Request for Information published by HMRC to gather views on split payments
- Online shopping market expansion has brought challenges for tax systems, leading to VAT losses from cross-border online sales
- UK government believes split payments offer a powerful means of enforcing VAT compliance on sellers outside the UK’s jurisdiction
- Fraud by online sellers involves using fake VAT numbers or collecting VAT and disappearing
- Proposed split payment methods include standard rate split and extraction of tax regardless of actual liability.
Source: deeksvat.co.uk
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.
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