27 February 2024| CATEGORIES: e-Commerce, EU VAT, HMRC, IOSS| TAGS: e-commerce, HMRC, IOSS, Northern Ireland
From 1 March 2024, businesses in Northern Ireland or Norway, which sell low-value goods imported from outside the EU and Northern Ireland to customers inside those regions can register with HMRC to use the import one stop shop (IOSS) system. Currently, Northern Irish businesses are only able to register for the IOSS in an EU member state.
16 January 2024| CATEGORIES: Digital Reporting Requirements, e-invoicing, EU VAT, VIDA| TAGS: DRR, e-invoicing, EU, platform economy, single VAT registration
A year after the EU VAT in the Digital Age (VIDA) proposals were published it seems increasingly likely that the introduction of the measures will be delayed. The original timetable had intended the measures be approved by the end of 2023, with implementation in stages between 1 January 2025 to 1 January 2028. The EU Parliament has already voted in favour of a one-year postponement of all three ViDA pillars. The DRR and e-invoicing aspects are likely to be delayed until 2030 or later.
27 October 2023| CATEGORIES: EU VAT Gap, VAT compliance| TAGS: EU, Tax gap, VIDA
The EU Commission has published the annual VAT Gap study, which measures the difference between theoretically expected VAT revenues and the amount actually collected. The report shows that Member States lost around €61 billion in VAT in 2021, compared to €99 billion in 2020. The lost revenue mainly relates to VAT fraud, evasion and avoidance, …
Continue reading “EU VAT Gap reduced by €38 billion in 2021”
13 October 2023| CATEGORIES: e-Commerce, high-volume addresses, HMRC campaign| TAGS: e-commerce, NETPs, online marketplace rules
The use of high-volume addresses as the principal place of business has increased in recent years. Businesses registered for VAT at a high-volume address will be asked by HMRC to prove they are established in the UK.
Many of these addresses are being used by overseas established business and are potentially being used by some traders to avoid being treated as a Non-Established Taxable Person (NETP) by online marketplaces.
As a result, some online marketplaces are not collecting and paying the VAT due on behalf of the trader.
29 September 2023| CATEGORIES: CDS, CHIEF, Customs, Customs declarations, Exports| TAGS: CDS, Customs, Export declarations
HMRC’s Customs Handling of Import and Export Freight (CHIEF) system is being replaced by the Customs Declaration Service (CDS). The last day to make import declarations through CHIEF was 30 September 2022. CHIEF was due to be closed for export declarations from 30 November 2023 (extended from the original date of 31 March 2023). However, HMRC have now announced that the deadline has been further extended, with a phased approach to implementation.
22 September 2023| CATEGORIES: domestic fuel, HMRC campaign, reduced VAT rate| TAGS: de minimis test, energy suppliers, HMRC campaign, reduced VAT rate
HMRC have launched a ‘one-to-many’ letter campaign aimed at energy suppliers, regarding the reduced VAT rate for supplies of fuel and power. HMRC are asking that suppliers review their systems and processes for accounting for VAT, to ensure they are accounting for VAT in line with HMRC’s published guidance.
13 September 2023| CATEGORIES: Brexit, GB to NI goods, Not at risk| TAGS: Brexit, Customs, Northern Ireland, Not at risk
HMRC have issued a reminder to businesses selling goods from Great Britain into Northern Ireland that the UK Internal Market Scheme (UKIMS) will replace the UK Trader Scheme (UKTS) from 30 September 2023. The UK Internal Market Scheme will continue to enable registered traders to move goods in line with existing ‘not at risk’ arrangements.
18 August 2023| CATEGORIES: e-Commerce, GST, Jersey, New legislation| TAGS: e-commerce, GST, import, Jersey
With effect from 1 July 2023, Jersey has introduced Goods and Services Tax (GST) on sales of e-commerce goods made to consumers in Jersey by non-resident businesses. There is a registration threshold of £300,000. When purchasing goods from overseas retailers who become registered for GST, consumers will pay 5% GST to the supplier (vendor) at the point of sale.
11 August 2023| CATEGORIES: input tax recovery, sale of shares, VAT case| TAGS: Holding company, input tax, sale of shares, VAT refund
The Upper Tribunal (UT) has released its judgment in the Hotel La Tour Limited case. The case concerned the recovery of VAT on advisers’ costs relating to the sale of shares in a subsidiary company.
The UT rejected HMRC’s appeal against the previous decision of the First-tier Tribunal (FTT) which had found that the VAT on the advisers’ costs could be recovered as there was a link to future taxable supplies.
9 August 2023| CATEGORIES: Electronic documents, International trade, New legislation| TAGS: Containers, digitalisation, International trade
The Electronic Trade Documents Act 2023 received Royal Assent on 20 July 2023, and will come into force on 20 September 2023. The Act applies to trade documents such as bills of exchange, bills of lading, and ships’ delivery orders, and amends the law so that electronic trade documents are granted the same legal status as physical trade documents, which was not previously the case.
