The VAT rate for internet access services within Hungary decreased from 27% to 18% on 1 January 2017. The rate for other kinds of telecommunication, broadcasting or electronic services remains 27%. See VAT Information Sheet 3/2017.
The European Commission has opened three consultations as part of the ongoing work on its action plan on VAT, launched in April 2016. The three consultations are:
HMRC is to introduce regulations to put the existing 'vapour recovery scheme' extra-statutory concession on a statutory footing with effect from 1 April 2017.
The Scottish government has introduced the Air Departure Tax (Scotland) Bill, to replace air passenger duty in Scotland from April 2018.
Graham Elliott (City & Cambridge Consultancy Ltd) comments on the FTT decision in Inspired by Service Ltd.
HMRC has issued Revenue and Customs Brief 17/2016, setting out its policy, effective from 1 April 2017, on the VAT treatment of colouring and dot-to-dot books, many of which are specifically labelled as suitable for children and/or adults.
The Value Added Tax (Small Non-Commercial Consignments) Relief (Amendment) Order, SI 2016/1199, increases the value limit for relief from VAT on small non-commercial consignments imported into the EU from £34 to £39 with effect from 1 January 2017.
The Office of Tax Simplification (OTS) has published the terms of reference for its two latest reviews, announced at the Autumn Statement, covering stamp duty on paper share transactions and VAT.
For the review of stamp duty, the OTS will consider:
Michael Conlon QC and Julian Hickey (Temple Tax Chambers) review some important VAT decisions made this year, including BPP Holdings, Aspiro, Bookit and Airtours, and consider the implications of Brexit on the VAT landscape.