- Research Objectives and Methodology: HMRC commissioned research to investigate the importing behavior of VAT unregistered businesses, focusing on the nature and scale of services imported from both EU and non-EU countries. A total of 196 telephone interviews were conducted with owners of businesses that imported services in the past year.
- Importing Services Trends: The majority (82%) of businesses primarily engaged in importing services rather than goods, with website design (45%), e-commerce (41%), and marketing services (37%) being the most commonly imported. Most businesses imported services from non-EU countries, and a significant portion (57%) imported services valued under £1,000, indicating low average import values.
- Impact of EU Exit and Tax Treatment: Following the UK’s exit from the EU, 45% of businesses expected no change in their trade behavior, while 40% anticipated impacts such as price increases. Awareness of tax rules, specifically the reverse charge mechanism, was low among businesses, with only 19% familiar with the term and even fewer understanding its implications for their operations.
Source gov.uk
Latest Posts in "United Kingdom"
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
- Tribunal Rules Government Grants Not Consideration for VAT in Further Education Sector
- HMRC Announces New Advisory Fuel Rates for Company Cars Effective September 2025
- ICS2 Implementation for Northern Ireland: Transition Details and Support for Carriers by HMRC
