VAT

Following judgements in four European court cases HMRC has made some immediate changes to its policy on the VAT exemption available for cost sharing groups.

HMRC has updated its VAT guidance to sellers which sets out the sellers’ VAT obligations if they use an online marketplace to sell goods in the UK.

HMRC is requiring online marketplace operators, such as Amazon, ebay and Gumtree to carry out checks to ensure sellers are paying the correct amount of VAT.

Residential safety products and services are currently taxed at 20% but there is a view that they shouldn’t be given they are essential requirements that can save lives. A petition has been lodged on the UK Parliament’s website to try and make them VAT zero-rated.

From 1 April 2018 the concession enabling clubs to treat affiliation fees as exempt from VAT will be withdrawn by HMRC.

HMRC has delayed the introduction of Making Tax Digital (MTD) however, from April 2019 VAT will be leading the way. 

Does your business purchase goods from other EU countries? Will the VAT implications of Brexit impact on your cashflow or actually cost you money?

HMRC recently commissioned Ipsos MORI to conduct quantitative and qualitative research into business behaviours and experiences associated with VAT registration. Their findings make interesting reading.