Martin Shah and Gary Barnett (Simmons & Simmons) provide your monthly review of key developments in the VAT world.
Digital versions of newspapers and zero-rating
Forward with a spring? Chris Sanger (EY) reports.
Following recommendations by the OTS in its report on VAT simplification, HM Treasury is consulting until 5 June 2018 on the effects of the current VAT threshold on business growth, and ways to smooth the cliff-edge effect for businesses of reaching the threshold.
HMRC is consulting until 29 June 2018 on VAT ‘split payment’ as a means of preventing online VAT fraud, whereby a supplier would receive the net amount, with VAT remitted directly to HMRC.
The Fulfilment Businesses Regulations, SI 2018/326, replace and revoke SI 2018/299, laid on 6 March, which contained errors. The regulations set out the detailed rules for operation of HMRC’s new fulfilment house due diligence scheme.
The European Commission has sent letters of formal notice to the UK, requesting a response within two months on two matters: VAT zero-rating for certain commodity derivatives under the UK’s Terminal Markets Order; and the UK’s refusal to pay over more than €2bn in customs duty lost through fraud.
The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations, SI 2018/306, implement three changes to the aviation EU ETS with effect from 31 March 2018, following amendments to the EU regulation.
The changes: