5 Major Developments in the United Kingdom
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Borough Council of King’s Lynn and West Norfolk: excess car parking charges – UT
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Importance of Option to Tax Record Keeping as HMRC plan changes in 2023
Bad debts (relief for underpaid sales invoices)
Brexit
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UK continues Northern Ireland border check freeze despite EU infringement proceedings
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TBI Expert View by Taxback International Serie 2 Episode 1 : “Brexit: The Tail End of the Storm”
Composite Supply
Coronavirus
Cryptocurrency and NFT
Customs
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HMRC Guidance: Known error workarounds for the Customs Declaration Service (CDS)
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HMRC Guidance: Valuing imported goods using Method 1 (transaction value)
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HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021
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Carmakers warn on EU tariffs threat to electric vehicle prices
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Legislation enacted ahead of entry into force of trade agreements with India and UK
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Official Statistics: Customs declaration volumes for international trade in goods in 2021
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The TP/Customs Saga continues: new valuation guidance issued by UK Customs
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HMRC Guidance: Claiming preferential rates of duty between the UK and EU
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HMRC Collection: Working out the customs value of your imported goods
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Update from HMRC for Importers/Exporters on CHIEF user’s migration to CDS
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HMRC Guidance: Moving qualifying goods from Northern Ireland to the rest of the UK
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HMRC Guidance: Claiming preferential rates of duty between the UK and EU
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HMRC Notice Notice 252: valuation of imported goods for customs purposes, VAT and trade statistics
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HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021
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HMRC Extends Use Of CHIEF For Businesses Unable To Switch To CDS
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UK announces new trading schemes to cut tariffs on goods from developing countries
DAC7
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HMRC released a consultation draft regarding Digital Platforms reporting
- HMRC plans for Digital Platforms to report trading data of users – Consultation open
Deduction (Input Tax Credit)
- The rise of electric vehicles: EVolution of the fleet
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VAT tribunal decision shows care needed with property leases
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VAT and Business Property – Make sure that leases are correctly documented
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HMRC v NHS Lothian Health Board: Input tax recovery – scope of evidence required
- New process to support repayment claims
- HMRC have an implied power to refuse VAT credits
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Supreme Court: NHS Lothian Health Board – Fleming claim for the repayment of input VAT
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Flashback on ECJ Cases C-63/04 (Centralan Property) – Adjustment period of capital goods
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Supreme Court clarified UK’s position on input tax deduction in the absence of a valid VAT invoice
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Supreme Court: VAT assessments – time bar – reduction to claimed VAT credits
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UK First Tier Tribunal’s decision in The Towards Zero Foundation [2022] UKFTT 226 (TC)
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Input tax attribution to business and non-business activities
Digital Services Tax
E-Commerce / Electronic services
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HMRC Collection: Selling goods using an online marketplace or direct to customers in the UK
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HMRC internal manual: VAT Fulfilment House Due Diligence Scheme
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Digital Training and Events—Getting VAT Right for UK Businesses
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UK looking at split payment to combat fraud by e-commerce sellers using “stolen” VAT numbers
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Sovos webinar: Selling on Marketplaces: 4 Steps to Keep your Business VAT Compliant (Nov 9, 2022)
- Parliamentary Committee reviews Digital Services Tax
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Uber handed £615million VAT bill payable to HMRC next quarter
- HMRC plans for Digital Platforms to report trading data of users – Consultation open
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Four years on: Wayfair’s impact on UK cross-border trading and what’s still to come
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ECJ C-695/20 (Fenix International) – AG Opinion – Legality of Art. 9a of the Implementing Regulation
E-invoicing
ECJ (European Court of Justice)
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UK VAT case-law review of the year – Top ten VAT cases of 2022
- Flashback on ECJ Cases – C-392/11 (Field Fisher Waterhouse) – Rental of immovable property and the services associated with this rental can form a single service from a VAT point of view
- Flashback on ECJ Cases C-369/04 (Hutchison 3G and Others) – Auctioning of the UMTS licences is not a taxable activity
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Flashback on ECJ Cases C-63/04 (Centralan Property) – Adjustment period of capital goods
- Flashback on ECJ Cases C-408/98 (Abbey National plc) – Costs of the transferor for the services related to TOGC form are directly and immediately related to the entire economic activity
- ECJ C-695/20 (Fenix International) – AG Opinion – Legality of Art. 9a of the Implementing Regulation
Environmental Tax
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The Packaging Waste (Data Reporting) (England) Regulations 2022
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HMRC Guidance: Get tax relief on exported and converted components for Plastic Packaging Tax
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Plastic Packaging Tax: HMRC attempt to increase number of registrations
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Plastic Packaging Tax: Submitting returns and reusable plastic crates update
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HMRC Guidance Packaging waste: prepare for extended producer responsibility
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UK’s Plastic Packaging Tax – Key obligations to protect your business and officers
Excise
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News story: Government announces six-month extension to alcohol duty freeze
- HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021
Exemption
- Jeremy Hunt urged to scrap VAT on defibrillators by SNP
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Mainpay: Supplies of temporary medical staff not VAT exempt – Court of Appeal
- Flashback on ECJ Cases – C-270/09 (MacDonald Resorts) – Sale of contractual rights that can be converted into rights of temporary use of holiday accommodation
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Reform to UK VAT treatment of fund management: consultation published
- Mainpay Ltd – CoA Judgment – Supply of medical personnel is a taxable supply of staff
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HMRC consults on administration of VAT option to tax notifications
- UT: Hospital parking VATable
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EU Remains Resilient As VAT U-Turn Threatens UK Luxury Retail Revenue
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HMRC Policy paper: Revenue and Customs Brief 11 (2022): VAT and children’s face masks
- Partial exemption de minimis relief
- Flashback on ECJ Cases – C-424/11 (Wheels Common Investment Fund Trustees and Others) – An investment fund in which the assets of a pension scheme are not in scope of the concept of ‘mutual investment funds’ (not VAT exempted)
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FTT: Binfield v Revenue & Customs: preliminary hearing on whether LLP opted to tax
- Flashback on ECJ Cases – C‑259/10 and C‑260/10 (The Rank Group) – Two identical supplies treated differently give rise to a distortion of competition
- VAT Treatment of Coronavirus Testing Services
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Changes to notification process for opting to tax land and buildings
- Should VAT be charged on COVID-19 PCR testing services?
Export
Fiscalization
Flat Rate Schemes
Fraud / Tax Evasion
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HMRC Official Statistics: VAT gap estimate of 10Bn GBP – 2021 to 2022 VAT Receipts Investigation
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Official Statistics: Preliminary estimate of the VAT gap (tax year 2021 to 2022) – 10BnGBP/6.9%
- UT: Northside Fleet Ltd v Revenue – Whether FTT followed correct approach when denying input tax credit under Kittel principles
- New process to support repayment claims
- UK looking at split payment to combat fraud by e-commerce sellers using “stolen” VAT numbers
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FTT: Sintra Global Inc v Revenue: VAT – Excise Duties – Penalties – ‘controlling mind’
- UT: Northside Fleet Ltd – Whether First-tier Tribunal followed correct approach when denying input tax credit under Kittel principles
Free Trade Agreement
Implementation / Reform
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Guernsey’s politicians hit back at claims of GST ‘threats and scare-mongering
- UK abandons Online Sales Tax plan
- Decision not to proceed with Online Sales Tax
Importation
- HMRC Guidance: Valuing imported goods using Method 1 (transaction value)
- Key Considerations for UK Retailers Exporting to the EU
- HMRC Collection: Working out the customs value of your imported goods
- Update from HMRC for Importers/Exporters on CHIEF user’s migration to CDS
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BMW Shipping Agents Ltd – FTT – Import – Whether taxpayer is the Declarant and liable to import VAT
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FTT: BMW SHIPPING AGENTS LIMITED – Liability for import VAT – C18 Post Clearance Demand Note
- HMRC Extends Use Of CHIEF For Businesses Unable To Switch To CDS
- HMRC Guidance: Ask to continue to use Customs Handling of Import and Export Freight (CHIEF) from 1 October 2022
Intrastat
Invoice
- Supreme Court rejects NHS historic input VAT claims
- Supreme Court clarified UK’s position on input tax deduction in the absence of a valid VAT invoice
- Input VAT largely irrecoverable by property partnership
Liability (Reverse Charge/Withholding)
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HMRC Form: Tell HMRC about VAT on goods you’ve sold to satisfy a debt
- UK looking at split payment to combat fraud by e-commerce sellers using “stolen” VAT numbers
- HMRC Guidance: Secondary liability and assessment notices and joint and several liability notices for Plastic Packaging Tax
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HMRC Guidance: Domestic reverse charge procedure (VAT Notice 735)
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UK Uber pushes for 20% VAT obligations on all private taxi operators
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Impact assessment – VAT deferral new payment scheme – screening equality impact assessment
- HMRC Guidance: Cash Accounting Scheme (VAT Notice 731)
- BMW Shipping Agents Ltd – FTT – Import – Whether taxpayer is the Declarant and liable to import VAT
- Distance selling to the UK: postponed VAT accounting
Place of Supply
- Digital Training and Events—Getting VAT Right for UK Businesses
- HMRC Guidance: Place of supply of services (VAT Notice 741A)
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An overview of the key points including covering B2B and B2C supplies
- ECJ C-695/20 (Fenix International) – AG Opinion – Legality of Art. 9a of the Implementing Regulation
Private Use
- ECJ C-607/20 (GE Aircraft Engine Services) – Judgment – Issue of retail vouchers to employees is not a taxable transaction
- Recovering VAT on Staff Expenses
Rate
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Chocolate body paint is zero rated, but a bar of chocolate is standard rated
- Should VAT on community centres be zero-rated?
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News Corp UK & Ireland: zero-rating of digital newspapers – Supreme Court hearing
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News UK VAT fight worth £100m+ to publishers reaches Supreme Court
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Standard or reduced VAT rate due on Charging of Electric Vehicles?
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Calls for VAT to be slashed as one-third of hospitality firms at risk of failure
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British charging operators want to see reduced VAT on electric car charging
- VAT on lap dances
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Charities, You May Be Entitled To A 5% VAT Rate On Your Energy Bills!
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FTT: Innovative Bites Ltd – zero rating – food (large marshmallows intended to be roasted)
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Isle of Man Issues Public Notice on Reduced VAT on Certain Construction Services
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HMRC Guidance: Goods or services supplied to charities (VAT Notice 701/58)
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Back to the Future – What Can Businesses Learn From the UK’s 2008 VAT Cut?
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Treasury alters scope of reduced 5 percent VAT for construction services
- UK Government freezes alcohol duty in mini-budget
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Isle of Man Parliament Considers Order to Amend VAT Law for Energy-Saving Materials
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Isle of Man Temporary VAT Zero-Rate for Energy-Saving Materials
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FTT: E-ZEC MEDICAL TRANSPORT SERVICES LIMITED: zero rate for non-emergency ambulance services?
Real Estate/Immovable Property
- Changes to the processing of option to tax forms by HMRC
- Flashback on ECJ Cases – C-270/09 (MacDonald Resorts) – Sale of contractual rights that can be converted into rights of temporary use of holiday accommodation
- VAT tribunal decision shows care needed with property leases
- VAT Domestic Reverse Charge technical guide
- Partnership recovers VAT on associated company’s lease
- Overview of VAT for property businesses
- HMRC consults on administration of VAT option to tax notifications
- HMRC Guidance: VAT domestic reverse charge technical guide
- Changes to the Option To Tax of land and buildings
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Ventgrove Ltd v Kuehne+Nagel Ltd case – early termination fees and compensation payments
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Isle of Man Issues Public Notice on Reduced VAT on Certain Construction Services
- Isle of Man VAT breaks for construction
- Treasury alters scope of reduced 5 percent VAT for construction services
Real Time Reporting/Continuous Transaction Controls
Refund
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FTT: PYE MOTORS LTD – motor dealer – overpayment of output tax on demonstrator bonuses
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UK 13th Directive : To be done before 31st December – Recover UK VAT
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UK VAT Deadline Looms: EU businesses to tackle paper-based claims once more
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HMRC launches online form to support VAT return repayment claims
- Supreme Court: NHS Lothian Health Board – Fleming claim for the repayment of input VAT
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VAT Retail Export Scheme – Tax Free Shopping is not Returning
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UK Chancellor of the Exchequer Brings Forward Medium-Term Fiscal Plan Measures
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UK Chancellor of the Exchequer Brings Forward Medium-Term Fiscal Plan Measures
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UK Mini Budget Reversal: scrapping of VAT free shopping scheme an unfortunate loss
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HMRC Guidance: Refunds of UK VAT for non-UK businesses (VAT Notice 723A)
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HMRC Form: Claim a VAT refund on a conversion if you’re a DIY housebuilder
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Government relaunches VAT refund scheme for free to access galleries and museums
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UK to introduce sales tax free shopping for overseas visitors
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Introduction of digital VAT free shopping for visitors to the UK
Registration
- Deeks VAT News Issue 28
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Cruel dilemmas for small businesses over frozen VAT threshold
- UK: Tax proposals in Autumn statement
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UK Autumn Statement: 16,700 businesses drawn into VAT net as inflation soars
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UK Autumn Statement: micro businesses drawn into VAT net as inflation soars
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UK tax agency’s new online VAT system causing ‘havoc’, say agents
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HMRC VAT Notice 700/1 – VAT Registration Numbers – When to expect them?
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FTT: JAGVINDER TAKHAR (t/a GOLDEN FRY) – retrospective deregistration
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HMRC Notice: Notice Who should register for VAT (VAT Notice 700/1)
Reporting / Compliance
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Importance of Option to Tax Record Keeping as HMRC plan changes in 2023
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HMRC Guidance: Tell HMRC that you will make a disclosure about misusing your till system
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LITRG press release: Risk of imminent VAT return filing problems under new tax reporting regime
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UK tax agency’s new online VAT system causing ‘havoc’, say agents
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No reasonable excuse for reliance on VAT adviser, as no evidence given
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Are you on top of indirect tax changes? Changes in VAT and other indirect taxes for 2023
- HMRC Form: Tell HMRC about VAT on goods you’ve sold to satisfy a debt
- UK tax agency’s new online VAT system causing ‘havoc’, say agents
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HMRC Guidance: Apply for the Fulfilment House Due Diligence Scheme
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Reporting rules for digital platforms – draft regulations published
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HMRC contacts agents regarding closure of online VAT returns
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Making Tax Digital (MTD) – old VAT portal closes 1 November 2022
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HMRC Guidance: Apply for an exemption from Making Tax Digital for VAT
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Businesses must comply with new VAT rules by November or risk penalties, warns ICAEW
SAF-T (Standard Audit File for Tax)
Split Payment
SME (Small and Medium-Sized Enterprises)
- Cruel dilemmas for small businesses over frozen VAT threshold
- UK Autumn Statement: micro businesses drawn into VAT net as inflation soars
Supply of Services
Tax Point (When the Chargeable Event Occur)
Taxable Amount
- Flashback on ECJ Cases – C-53/09 & C-55/09 (Loyalty Management UK and Baxi Group) – Payments to suppliers under customer loyalty program in taxable amount
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Borough Council of King’s Lynn and West Norfolk: excess car parking charges – UT
- FTT: PYE MOTORS LTD – motor dealer – overpayment of output tax on demonstrator bonuses
- HMRC Guidance: Valuing imported goods using Method 1 (transaction value)
- Flashback on ECJ Cases – C-398/99 (Yorkshire Co-operatives) – The nominal value of that coupon must be included in the taxable amount in the hands of the retailer
- The TP/Customs Saga continues: new valuation guidance issued by UK Customs
- HMRC Collection: Working out the customs value of your imported goods
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New approach to VAT treatment of compensation/termination payments
- Flashback on ECJ cases C-353/00 (Keeping Newcastle Warm) – Price subsidy part of consideration for service and in taxable amount
- Flashback on ECJ cases C-498/99 (Town & County Factors) – The full amount of the participation costs received by the organizer of a game forms the taxable amount
Taxable Person
Taxable Transaction
- Flashback on ECJ Cases – C-53/09 & C-55/09 (Loyalty Management UK and Baxi Group) – Payments to suppliers under customer loyalty program in taxable amount
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Mainpay Ltd – CoA Judgment – Supply of medical personnel is a taxable supply of staff
- VAT treatment of financial intermediary services
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FTT decision Ashtons Legal: to whom was supply of leases made?
- Flashback on ECJ Cases C-369/04 (Hutchison 3G and Others) – Auctioning of the UMTS licences is not a taxable activity
- ECJ C-607/20 (GE Aircraft Engine Services) – Judgment – Issue of retail vouchers to employees is not a taxable transaction
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Upper Tribunal: Northumbria Healthcare NHS Foundation Trust – VAT declared on parking charges
- VAT on lap dances
- Northumbria Healthcare: car parking chargeable to VAT – UT
- New approach to VAT treatment of compensation/termination payments
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‘No fee, no charge’ does not mean there is no consideration – UK Tribunal
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New VAT assessment method ‘impinges’ on charities, admits HMRC
- Ventgrove Ltd v Kuehne+Nagel Ltd case – early termination fees and compensation payments
- Input VAT: payments must be linked to intention to trade
Tax Authorities / Penalties
- Deeks VAT News Issue 28
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Looking back @2022 #1: Changes in late payment interest and penalties in 2022 (EU/UK)
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HMRC Guidance: Prepare for upcoming changes to VAT penalties and VAT interest charges
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New penalty regime for late submission and payment of VAT returns
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FTT: Kattrak International Ltd – default surcharge – whether reasonable excuse
- Electronic sales suppression and HMRC
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HMRC Guidance: Prepare for upcoming changes to VAT penalties and VAT interest charges
- UK consults on 2024 platform operators VAT regulations
- FTT: Sintra Global Inc v Revenue: VAT – Excise Duties – Penalties – ‘controlling mind’
- VAT deregistration denied, penalties upheld
- New VAT penalty regime: Is your business ready?
- Businesses must comply with new VAT rules by November or risk penalties, warns ICAEW
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FTT: NOTTINGHAM FOREST FOOTBALL CLUB LIMITED: whether assessment issued out of time
Territory
Transfer Pricing
TOGC (Transfer of a Going Concern)
- Overview of VAT for property businesses
- Flashback on ECJ cases C-149/01 (First Choice Holidays) – Total amount to be paid by the traveler includes the additional amount charged by a travel agent acting as an intermediary on behalf of a tour operator
- FTT: Binfield v Revenue & Customs: preliminary hearing on whether LLP opted to tax
- Flashback on ECJ Cases C-408/98 (Abbey National plc) – Costs of the transferor for the services related to TOGC form are directly and immediately related to the entire economic activity
VAT Group
VAT Identification Number
Vouchers
- ECJ C-607/20 (GE Aircraft Engine Services) – Judgment – Issue of retail vouchers to employees is not a taxable transaction
- Input VAT claims allowed for Harrods Steam vouchers
War in Ukraine