VAT news tagged as "UK VAT"

United Kingdom

UK anti-VAT fraud split payments on e-commerce

March 8th, 2017

The UK’s Chancellor has announced in today’s budget a public consultation on introducing anti-VAT fraud spilt payments on B2C e-commerce. The mechanism would work by UK consumers automatically paying the VAT element of any online purchase from overseas sellers directly to HMRC.  This would aim to eliminate the growing problem of VAT fraud by non-EU …


United Kingdom

UK VAT free allowance on small value packages

January 14th, 2017

The UK has increased the VAT-free threshold for small packages being imported into the country from outside of the EU. The maximum value of goods is now £39 – previously £34.  The new threshold was introduced on 1 January 2017. As with all EU member states, the UK permits low-value consignment stock relief from duties …


United Kingdom

UK challenges EU e-commerce VAT

November 16th, 2016

A UK VAT case is making progress towards potentially relieving some e-commerce sellers of their foreign VAT registration and returns burden. Separating online selling from the delivery service eliminates foreign VAT registrations? The appeal case is being brought by Sports Direct, a UK high-street and online retailer, to the UK’s First-Tier Tax Tribunal shortly. It …


United Kingdom

UK exit from EU VAT delayed?

November 3rd, 2016

On 3 November, the UK High Court ruled (against the UK government) that the UK Parliament would vote on an Act of Parliament on invoking Article 50 of the Lisbon Treaty – which triggers the start of 2-year EU exit talks.  This is likely to delay the provisional UK ‘Brexit’ date of April 2019 – and …


United Kingdom

UK VAT fines if ‘should have known’ of fraud

September 30th, 2016

The UK’s HMRC has launched a consultation on VAT fraud, which includes introducing potential fines on companies that ‘knew or should have known their transactions were connected with fraud’. Arguably, EU case law points to parties in a fraudulent transaction who merely knew or should have identified the fraud (didn’t instigate or benefit from the …


United Kingdom

Brexit: Scotland devolves VAT?

September 4th, 2016

When the UK leaves (‘Brexit’) the European Union, Scotland may seek to devolve from the UK control of VAT charged within its borders. This is currently forbidden, as EU rules require that VAT be raised at the national level. In the UK, this embraces all four Union country members, including Scotland. Since the Scottish VAT …


United Kingdom

UK VAT cut pitch sensible?

August 2nd, 2016

The investment bank, Bank of America Merrill Lynch, has proposed a temporary reduction in the UK’s standard VAT rate from 20% to 17.5%. It has suggested this to counter the inflationary effects of the UK’s currency, Sterling, falling by around 15% since the Brexit referendum, and to keep consumers spending. Do temporary VAT cuts work? …