Ecospend, the leading payments platform in the UK, recently acquired by Trustly, outlines the potential of Open Banking payments to close the VAT tax gap which stands at £10 billion, or 6.9% of the VAT receipts received by the government, for the financial year 2021-22.
Estimates from HMRC have found that Open Banking has been pivotal in closing the VAT gap, which is the difference between the expected VAT revenue and the actual amount collected, for the tax year 2021 to 2022. Falling from 7% the previous year, this signals the existing role that new payment technologies have played in reducing the gap and the crucial function they will have in ensuring that the tax gap continues its current trajectory.
Source: financialit.net
Latest Posts in "United Kingdom"
- Supreme Court Clarifies VAT Recovery Rules for Corporate Groups After Hotel La Tour Decision
- Appeal Dismissed: Input VAT Denial and Personal Liability Upheld on Kittel Grounds for One Call Consultants
- Input VAT Denial Upheld: Kittel Assessment and Penalties Made Within Statutory Time Limit
- Boehringer Ruling: Could £2.5bn VAT Reclaims Transform UK Pharma and Healthcare Forever?
- VAT Recovery Possible Without Fully Compliant Invoices if Alternative Evidence Provided, UK Tribunal Rules
