VAT import one stop shop for Northern Ireland

Businesses in Northern Ireland can now register for the scheme to account for VAT on goods sold to consumers in the EU or Northern Ireland. If this article is supporting your professional development, it can count towards your verifiable CPD hours. Use the pop up at the bottom right corner of your screen to add […]

HMRC changes agent authorisation for VAT

The digital handshake in the agent services account should now be used for almost all agent authorisations for VAT. If this article is supporting your professional development, it can count towards your verifiable CPD hours. Use the pop up at the bottom right corner of your screen to add reading this article as an activity […]

HMRC challenges UK VAT status of online traders

HMRC will contact businesses believed to be non-established taxable persons (NETPs) for VAT purposes. The business will then have 30 days to challenge HMRC’s decision. HMRC will send a one-to-many letter from late January 2024 to businesses that it believes are NETPs for UK VAT purposes. The letter was first mentioned in Agent Update 112. The […]

Exchange of payment data to fight VAT fraud

EU rules set to transform VAT fraud detection in e-commerce come into effect from 1 January 2024. From 1 January 2024, payment service providers (PSPs) offering payment services in the EU will be required to monitor the payees of cross-border payments. PSPs will be required to provide to the tax administrations in member states information […]

HMRC maintains approach to VAT treatment of fund management

Following a consultation, the government has confirmed it will keep a list-based approach to the VAT exemption for management of funds. In December 2022, the government published a consultation on the VAT treatment of fund management services. The consultation proposed to ensure current UK policy is included in UK law. This would establish the VAT […]

Digital scheme for DIY housebuilder VAT refunds launched

Taxpayers building their own home can now claim back VAT incurred through an online service. HMRC has launched an online service to reclaim VAT for DIY housebuilders. This follows an announcement at the Spring Budget 2023 and an update at the Autumn Statement 2023. The VAT DIY housebuilders scheme allows taxpayers building their own home to reclaim […]

Extension of VAT zero rates in Autumn Statement

The zero rate of VAT will apply to reusable period underwear and the installation of a wider range of energy saving materials from early 2024. The Chancellor announced the extension of two VAT zero rates at the Autumn Statement 2023. Period underwear The zero rate for women’s sanitary products, which replaced the reduced rate in […]

Extension of VAT second-hand margin scheme in NI

Eligible vehicles purchased in Great Britain and moved to Northern Ireland before 1 May 2023 can now be sold under the margin scheme until 30 April 2024. Until 1 May 2023, businesses could account for VAT on second-hand vehicles bought in Great Britain and sold in Northern Ireland under the second-hand margin scheme. This meant […]

HMRC consults on draft legislation on retained EU VAT law

The draft legislation and explanatory note clarify how VAT and excise law should be interpreted after changes made by the Retained EU Law (Revocation and Reform) Act 2023. The government has published draft legislation in relation to retained EU law for VAT and excise ahead of potential inclusion in the next finance bill. The legislation […]

HMRC to remove paper form for VAT registration

The VAT1 form will only be available to customers through the VAT helpline from mid November 2023. Over 95% of businesses, or their agents, already use HMRC’s online VAT registration service (VRS) to apply for VAT registration. HMRC wants to increase this further to speed up processing times for VAT registration applications. HMRC is therefore […]