HMRC have published RCB 6 (2023) which provides an update on the VAT treatment of digital publications following the Supreme Court judgment in the News Corp UK & Ireland Ltd case. HMRC is writing to organisations that submitted claims for overpaid VAT based on the earlier Upper Tribunal decision to establish whether they intended to proceed with their appeals given the Supreme Court decision.
HMRC have recently updated guidance in Notice 703 to clarify what is considered to be satisfactory evidence to zero rate exports. Businesses that export goods should review the guidance to ensure their record keeping meets these standards.
The Chancellor of the Exchequer, Jeremy Hunt, presented the Spring Budget to the House of Commons on 15 March 2023. This article looks at the main points of interest from a VAT and Customs perspective. The full set of Spring Budget 2023 documents are available here.
Non-UK businesses can now opt to make UK VAT refund claims electronically. The claims are submitted electronically using HMRC’s Secure Data Exchange Service (SDES) system. The system is optional and there are no immediate plans to make it mandatory.
HMRC has published new guidance on determining whether or not an activity is a business activity for VAT purposes. Revenue and Customs Brief (10) 2022 sets out HMRC’s new approach.
HMRC have changed the way they issue the certificate of status (CoS) to UK businesses. The CoS, which often needs to be included with foreign VAT refund claims as proof of UK trading status, is now issued by email by default.
The tax gap for the 2019/20 tax year is 5.3%, which represents £35 billion, according to statistics recently published by HM Revenue and Customs (HMRC). The total tax gap for Value Added Tax (VAT) is £12.3 billion.