Click here in order to follow the VAT update on the COVID-19.


 

HMRC Update

VAT: Overseas repayments for non-UK businesses

Notice 723A has been updated. Please find the latest information on this provided to the IVA by HMRC you can find here.

 

UK Global Tariff backs UK businesses and consumers

The Government has announced on 19th May the UK’s new MFN tariff regime, the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period.

The official information from HMRC you can find here.

The UK has said that about 6,000 of the commodity codes have been removed and other duty rates have been reduced, “liberalised” or simplified. The Global UK tariff post 1 Jan 2021 - 19 May 2020 edition in Excel version can be found here.

 

E-publications

In this year’s Budget, the UK Chancellor announced that e-publications would be zero rated in time for Christmas with an effective date of 1 December 2020.

HMRC has announced that the date has been brought forward due to Coronavirus. Excluded are publications wholly or predominantly devoted to audio or video content, e-audio books and audio or video files. Links to HMRC guidance:

https://www.gov.uk/government/publications/vat-zero-rating-e-publications/vat-zero-rating-e-publications

https://www.gov.uk/government/publications/revenue-and-customs-brief-3-2020-vat-liability-of-supplies-of-electronic-publications/revenue-and-customs-brief-3-2020-vat-liability-of-supplies-of-electronic-publications

It has also announced a temporary reduction in the rate of VAT for PPE for the protection of frontline staff from Coronavirus from 1 May 2020- 31 July 2020, covering:

 

  • disposable gloves
  • disposable plastic aprons
  • disposable fluid-resistant coveralls or gowns
  • surgical masks – including fluid-resistant type IIR surgical masks
  • filtering face piece respirators
  • eye and face protection – including single or reusable full-face visors or goggles

 

Links to the guidance below:

https://www.gov.uk/government/publications/revenue-and-customs-brief-4-2020-temporary-vat-zero-rating-of-personal-protective-equipment-ppe/revenue-and-customs-brief-4-2020-temporary-vat-zero-rating-of-personal-protective-equipment-ppe

https://www.gov.uk/government/publications/vat-zero-rating-for-personal-protective-equipment

 

The above information was kindly provided by Ruth Corkin from The VAT Practitioners Group (UK), contact: Ruth.Corkin@hhllp.co.uk.

Join incoming Conference

Linked In

News from the Board

IVA Meeting with the Portuguese Tax Authorities

The International VAT Association (IVA), represented by its President, Stephen Dale, and Board Member, Fátima Gouveia, met with the representatives of the Portuguese Secretary of State for Tax Affairs and of the Portuguese VAT Authority on the 9th of July 2019, in Lisbon. The IVA thanked the authorities for meeting with us at short notice.

Read more ...

News from IVA members

Rethinking the State Taxation of Services After Covid-19

In their article Michael J. Bernard and George L. Salis argue that when policymaker...

Read more ...

News from EC

News from the EU July 2020

The European Commission has published its latest tax trends data for Europe. The data shows that in 2018, tax revenues as percentage of GDP increased slightly in the EU 27 up to 40.2%. Revenues remained almost equally distributed among indirect taxes...

Read more ...

Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.