VAT

European finance ministers have reached agreement on VAT measures including: reduced rates on e-publications; a generalised reverse charge mechanism; interim ‘quick fixes’; and strengthened administrative cooperation against cross-border fraud.

The European Commission has sent a reasoned opinion to the UK, marking the second stage of infringement proceedings against the UK’s failure to pay over more than €2bn in customs duty lost through fraud between 2011 and 2017, involving imports of textiles and footwear from China.

The European Commission has approved the UK’s request to extend until December 2020 its VAT directive derogation allowing UK employers to use HMRC’s road fuel scale charges to account for VAT in respect of private use of company cars.

The EU Parliament’s economic and monetary affairs (ECON) committee has tabled its report containing amendments to the Commission’s proposal for creation of a definitive EU VAT system, in advance of the plenary debate and vote in Strasbourg on 2/3 October.

The EU Parliament’s economic and monetary affairs (ECON) committee has tabled its report containing amendments to the Commission’s proposal to allow member states greater flexibility in applying reduced rates, in advance of the plenary debate in Strasbourg on 2 October.

The VAT gap across the EU decreased by €10.5bn during 2016 to an overall figure of €147.1bn. This represents 12.3% as a percentage of revenue, down from 13.2% in 2015. Actual VAT revenues for the year across the EU rose by 1.1%.

The European Commission has published the latest in its series of ‘stakeholder’ notices setting out its view of the consequences of UK withdrawal in the area of customs and taxation.

The Taxation (Cross-border Trade) Act 2018 received Royal Assent on 13 September. The Act allows the government to create a standalone customs regime when the UK leaves the EU and provides for amendment of existing VAT and excise legislation.