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    Home  →  News   →   VALUE ADDED NEWS: VAT & INDIRECT TAX UPDATES – OCTOBER 2021

    VALUE ADDED NEWS: VAT & INDIRECT TAX UPDATES – OCTOBER 2021

    Your one-page October Indirect tax summary. It’s spooky season and there’s nothing quite as frightening as some new VAT updates!

    CASES

    • Do you sell alcoholic drinks between EU bonded warehouses? See Ampleaward where EU Member States were only able to exempt sales in bonded warehouses in their own territory, but fallback provisions in the UK could have possibly allowed the exemption.
    • Are you submitting a DIY housebuilder claim? In Andrew Ellis and Jane Bromley, it was held that you can make more
    • Thinking of submitting a late appeal against a VAT decision by HMRC? See Woodford Golf Club, where an application for a late appeal was disallowed as the delay was found to be the fault of the golf club.
    • In Rada in Business Ltd, the taxpayer paid their VAT liability a day late, and claimed reasonable excuse as the staff member was on furlough. The court dismissed this – the default occurred nearly a year into the COVID-19 pandemic and the taxpayer had sufficient time to put arrangements in place.
    • The extent to which items are “incorporated” or are “building materials” for the purposes of VAT recovery on buildings was discussed in Silver Sea Properties.

    HMRC UPDATES:

    • Use Freeport customs special procedure – updated guidance explaining the updated freeport customs special procedure application.
    • HMRC has issued its latest Bulletin to confirm full customs declarations and controls will be introduced as planned on 1 January 2022.
    • Claiming tariff quotas to reduce import duties – guidance explaining how to claim to reduced duties on your goods.
    • What happens if you don’t pay your tax bill? Guidance explains how HMRC deals with customers who don’t pay their tax, including information on debt enforcement powers and debt collection agencies.
    • When will HMRC issue a joint and several liability notice to companies connected with tax avoidance or evasion? See here.
    • Changes to Intrastat from 1 January 2022 – from this date, Intrastat will only apply for the movement of goods between NI and the EU. Movements between GB and EU will no longer be covered. See UK Trade Info for the new exemption thresholds.
    • Sending goods to an overseas customer using rules of origin – Guidance has been updated to explain how to check the goods exported from the UK meet the relevant rules of origin and provide proof of where they originate from.
    • One Stop Shop VAT return – Guidance on how to Submit OSS VAT return and guidance on how to pay the OSS VAT that’s due.
    • Plastic Packaging Tax – the requirement to change invoices to reflect plastic packaging tax is now “encouraged” rather than mandatory.
    • From 5th October 2021, you can now claim VAT on manual window blinds and shutters as ‘building materials’ under the VAT DIY Refund Scheme, subject to the normal rules.
    • The COVID-19 reduced rate for the hospitality sector has been increased from 5% to 12.5% with effect from 1st October.
    • HMRC have released a brief to reflect a Supreme Court decision – it has revised the meaning of ‘entire interest’ for the self-supply charge. The case concerned a VAT self-supply charge on the sale and lease back of a newly
      constructed residential care home
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