We have seen a marked increase recently in the number of businesses seriously considering applying to become AEOs – Authorised Economic Operators. The impetus for this arises from Brexit and the need to manage supply chain risk by planning for a potential ‘hard Brexit’. In the early days following the referendum there was a focus.
The case of U-Drive (UDL) v HM Revenue & Customs was recently heard at the Upper Tier Tax Tribunal. The case was an appeal by UDL against a decision of the First Tier Tax Tribunal in relation to the recovery of VAT on costs incurred in tripartite arrangements. UDL is a car and van self-drive.
This morning’s news that the UK will definitely leave the EU presents a number of VAT and customs duty challenges for businesses and also for the UK tax authorities. Our initial thinking on what lies ahead over the 2 year transition period we now have, is that businesses will want to think about end to end VAT and duty.
The Supreme Court handed down its judgement in the Airtours case last week. This case is the latest in an ever increasing line of case law relating to tripartite VAT recovery. HMRC were successful in denying Airtours recovery of VAT on the costs incurred on the basis that Airtours was not receiving services under the.
This VAT case represents a 17 year old dispute with HMRC which was originally concerned with the VAT liability of Halle’s ticket income – the question of whether the philanthropic VAT exemption applied. The issue before the Tribunal related to one final point on the VAT status of Halle’s membership scheme. Halle is a charitable organisation,.
HMRC has clarified its policy on zero-rating and reduced-rating for projects carried out under permitted development rights. Business Brief 9/2016 clarifies the evidence required to support zero-rating (the sale of the converted property) and reduced-rated (conversion services) where a conversion from non-residential to residential use takes places without full statutory planning consent under the permitted.
The European Commission has today published its Action Plan on VAT. We will be reflecting on the comments made and providing our insight on this in the next few days. In summary the key features of the proposals are: • Fundamental changes to the way cross-border retailers deal with their VAT compliance. Draft law is.
We understand that a large online selling platform has written to a number of retailers/traders and their agents requesting confirmation of their VAT number. It is likely that this is in response to the measures announced in the 2016 Budget to counter VAT avoidance and evasion that may have taken place through large online platforms..
It has recently been announced that the Gulf Cooperation Council (GCC) has agreed that its member states will introduce VAT from 1 January 2018. The members of the GCC include Bahrain, Kuwait, Oman, Qatar, Saudia Arabia and the United Arab Emirates. The rate is initially set at 5%, and similar to most VAT systems there.
With the date of the referendum now fixed for 23 June 2016 attention is turning to the VAT and Customs Duty considerations of a Brexit and questions are being asked by businesses about the likely timing of any changes and what these might be. The impacts can essentially be broken into 3 key areas for both.