Indirect Tax

Technical
1 February 2019

On 1 March 2019, the VAT accounting treatment for part and full payments for supplies that are retained/non-refundable where a customer does not take up the supply, changes from VAT free compensation to taxable consideration. Where a service is not used or goods are not collected by the customer, these are known as ‘unfulfilled supplies’.

Technical
1 February 2019

The VAT pilot has been opened up to all businesses who are mandated into MTD from 1 April 2019, but care needs to be taken to sign up at the right time. HMRC is also writing directly to businesses – have you/your clients received a letter?

Technical
1 January 2019

The final version of the draft Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019 , supporting information and guidance note were published on 7 November. The statutory instrument introduces the domestic VAT reverse charge (‘DRC’), via VATA 1994 s 55A, to relevant supplies of construction services with effect from 1 October 2019, as an anti-fraud measure. The reverse charge applies for business to business transactions where the customer is registered for UK VAT and required to report through the Construction Industry Scheme (CIS). The rules do not apply to zero-rated supplies.

Technical
1 December 2018

HMRC has been running a private pilot for Making Tax Digital (MTD) for VAT since April 2018 with privately invited clients of software developers that were going through testing. Once the private pilot interface was tested thoroughly and further functionality delivered, HMRC were able to open the pilot publicly, although they have taken decisions to limit entry initially as well as delay MTD for VAT mandation for certain complex businesses. HMRC have also started writing directly to businesses to tell them about MTD.

Technical
1 November 2018

Following the government’s publication of the ‘no-deal’ technical notices covering indirect taxes (reported in October’s Tax Adviser ), CIOT representatives have met with parliamentarians and representatives from HM Treasury to discuss the impact to customs duty, VAT and excise duty. It is important to note that arising points for a ‘no deal’ position could be equally relevant when the UK fully exits the EU, and possibly during a transitional period, depending upon what is agreed.

Technical
1 October 2018

Following on from our article in the May issue of Tax Adviser looking at the potential options for the expansion of VAT grouping arising from the joined cases Larentia + Minerva (C-108/14) and Marenave (C-109/14), the CIOT was represented at the technical consultation meeting with HMRC to discuss the draft legislation, published on 6 July 2018, along with a policy paper and explanatory notes .

Technical
1 October 2018

The government has published technical notices covering indirect taxes as part of its contingency planning for March 2019, should the UK exit the EU with no withdrawal agreement in place. Many issues could still be relevant for potential future ‘deal’ scenarios.

Technical

The CIOT, ATT and LITRG have responded to consultations on the draft Finance Bill 2018-19 Clauses and Schedules in respect of penalties and interest.

Technical
1 September 2018

CIOT has continued to liaise with HMRC in relation to the draft legislation on the domestic reverse charge for the construction sector and will continue to do so in relation to the required guidance.

Technical
1 September 2018

HMRC published the final version of its Notice 700/22 Making Tax Digital for VAT (‘ the Notice ’) on 13 July. The draft version of this notice went through a period of stakeholder review prior to publication and both the CIOT and the ATT, as well as various other stakeholders, provided feedback to HMRC with suggested amendments.