- Objectives of the Tax Update: The government aims to simplify and modernize the tax system, tackle non-compliance, enhance fairness for taxpayers, and improve the customs process for traders through a comprehensive package of proposals announced on April 28, 2025.
- Key Simplification Measures: Significant reforms include simplifying the Capital Goods Scheme, reducing fees for the Spirit Drinks Verification Scheme, and revising the Check Employment Status for Tax digital tool to ease use for employers and employees.
- Reforms to Tax Administration: The government is consulting on international tax rules reform, including changes to transfer pricing and permanent establishment laws, as well as promoting electronic invoicing to streamline business processes.
VAT-Related Topics
- VAT Treatment of Business Donations to Charity: A consultation on the VAT treatment of goods donated by businesses, aiming to align the treatment for goods donated for distribution to those in need with existing reliefs for goods donated for sale.
- VAT Online Marketplace Liability: A discussion on compliance challenges related to VAT on sales from overseas sellers via online marketplaces, including potential reforms to improve compliance.
- VAT Terminal Markets Order Consultation: A summary of responses to a consultation regarding the legislative reform of the VAT terminal markets order, with plans to engage further with industry stakeholders to modernize the legislative framework.
Customs-Related Topics
- Customs Digitalization: Initiatives to modernize customs processes and interactions with businesses, including pilots for electronic trade documents and collaboration with international customs partners.
- Temporary Admission Reforms: Improvements to the Temporary Admission process, including extended and simplified time limits for goods, removal of certain restrictions, and clearer guidance.
- Post and Parcels Exports Consultation: A response to a consultation on the customs treatment of post and parcel exports, introducing a new authorization scheme for Extra-Territorial Office of Exchange operators.
- Transit Improvements: Engagement with stakeholders to explore potential improvements to the transit process, including streamlining procedures and clarifying benefits related to transit security.
- Customs Infrastructure Funding: Changes to legislation requiring all border locations to provide and fund their own customs infrastructure, shifting responsibilities from government-funded inland border facilities.
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