United Kingdom

UK HMRC Seller VAT fraud eBay and Amazon deal

April 6th, 2018

The UK’s HMRC is to publish in April an agreement it has made with major online marketplaces, including Amazon and eBay, to combat VAT fraud on their websites by sellers. The agreement was committed to following a December 2017 recommendation by the Parliamentary Public Accounts Committee, PAC. Any marketplace failing to meet the requirements of …

United Kingdom

Digitisation of VAT Reporting

April 5th, 2018

European countries are increasingly demanding detailed electronic VAT transactional reporting from businesses to help them efficiently track tax due and reduce significant tax evasion. This includes: EU SAF-T; Making Tax Digital in the UK; live invoice reporting in Spain, Hungary and Italy; and Control Statements. Many countries have now introduced voluntary and mandatory transaction reporting …

United Kingdom

UK VAT Split Payments consultation

April 3rd, 2018

The UK has announced in the March 2018 Spring Statement a further public consultation on adopting anti-VAT fraud Split Payments on e-commerce. The mechanism would require the VAT-element of online sales to be paid directly to the UK tax authorities at the time of purchase. Split Payments are already used to a limited extent in Italy …

United Kingdom

UK to leave EU VAT regime 31 Dec 2020

March 21st, 2018

The UK’s date for leaving the EU VAT regime has been potentially set for 31 December 2020. On 19 March 2018, the UK and EU negotiating teams confirmed that a new draft Withdrawal Agreement, to be released later this week, will include a 21-month transition period ending 31 December 2020. At present, by act of …

United Kingdom

UK tourism VAT review

March 13th, 2018

Today’s UK Spring Statement included an announcement of a consultation around Northern Ireland cutting its 20% tourism VAT rate to match Ireland’s 9%. This was an election manifesto promise of the DUP, which is now in a power sharing arrangement with the Conservative government. As part of the DUP ‘confidence and supply’ deal, the Conservatives …

United Kingdom

UK – date for leaving EU VAT regime in doubt

March 5th, 2018

When the UK leaves the EU VAT regime on Brexit, an estimated 132,000 UK and many more EU companies trading with the UK may lose many VAT reporting simplifications. They may also incur stiff import VAT bills for the first time on goods sold cross-border. However, the date for this significant change is still uncertain as the UK’s …