United Kingdom

UK rules chocolate milkshake VAT free but strawberry & banana liable

February 14th, 2018

Today, the UK Upper Tribunal Tax court ruled that Nestlé’s Nesquik chocolate powder milkshake was zero rated for VAT; but strawberry and banana flavor were subject to 20% standard rated VAT. Nesquik milkshake drink powder is available in three flavours: chocolate; strawberry and banana. The chocolate flavor is based on cocoa butter which is zero …

United Kingdom

UK MTD VAT delay – early upgrades required

February 9th, 2018

The latest VAT implementation date for the UK’s Making Tax Digital, 1 April 2019, means most resident and non-resident businesses will be forced into preemptive accounting system changes in 2018. MTD – 1 April 2019 VAT filings MTD will require all VAT registered businesses to record all transactions digitally. In addition, they must then submit their …

United Kingdom

UK Brexit Taxation Bill leaves businesses at risk

February 4th, 2018

On January 8 2018, the legislation setting the UK’s post-Brexit customs and VAT regimes passed its second reading in the House of Commons. The preliminary statute prepares the country to take full governorship of its customs and VAT regimes from 30 March 2019, when the UK is scheduled to depart the European Union (EU). Since …

United Kingdom

UK MTD – VAT landmine for large taxpayers

January 31st, 2018

The UK’s 2019 Making Tax Digital (‘MTD’) proposal, to require all business to store and report digital VAT return data, has largely been portrayed as targeting small/micro businesses. The aim of MTD to improve accuracy of submissions, and reduce fraud opportunities. However, MTD includes a requirement for a complete digital journey for data that will …

United Kingdom

EU warns UK on MOSS VAT credits

January 26th, 2018

The European Commission (‘EC’) yesterday warned the UK that it was not complying fully with the EU Mini One-Stop-Shop (MOSS) scheme. MOSS was introduced across the EU in 2015. It enables providers of paid-for digital services (streaming media, e-books, apps, online news, software etc) to report and pay VAT charged to consumers in other EU …

United Kingdom

UK Making Tax Digital VAT consultation

January 19th, 2018

The UK has released draft regulations for consultation and draft VAT notice for the April 2019 launch of Making Tax Digital (MTD) VAT. A pilot for tax payers, agents and software providers is scheduled to start in April 2018. Making Tax Digital for VAT April 2019 MTD is an ambitious programme to digitize tax records …

United Kingdom

Automating the Tax Tangle of Exports

January 16th, 2018

Exports are of vital importance to any open economy and are worth £511 billion to the UK (in gross terms). Looking to capitalise on the improvement in global connectivity, the UK government urged businesses to make 2017 the ‘Year of Exporting’ – a theme that we expect to see extend into this year. Exports and …

United Kingdom

UK Brexit planning Authorised Economic Operator AEO

January 15th, 2018

UK businesses with large international supply chains risk huge delays for their goods crossing EU borders after 2019’s Brexit. However, so far only 608 UK businesses have considered a major mitigation of this customs clearance risk – applying for Authorised Economic Operator (AEO) certification.  This compares to a total of around 130,000 eligible UK exporters. Supply …

United Kingdom

UK Brexit Customs and VAT Bill

January 8th, 2018

On Monday 8 January, the UK Parliament has its second reading of the Taxation (Cross Border Trade) Bill, which lays the ground for the post-Brexit Customs, VAT and Excise regimes. The Bill was published on 20 November 2017, and is part of a series of Brexit laws to adjust UK legislation for post Brexit.  This includes …