- HMRC has revised its VAT rules for UK businesses with EU branches, reversing its previous position following the Skandia judgment.
- From 26 November 2025, UK VAT groups no longer need to apply the reverse charge on intra-group services with their EU establishments.
- Businesses can claim back UK VAT paid under the old reverse charge rules for the past four years.
- The change offers potential VAT savings, especially for financial services and partially exempt groups.
- Businesses should still consider anti-avoidance rules under section 43(2A) of the VAT Act 1994.
Source: kpmg.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.
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