Your one-page July Indirect Tax summary. On your marks. Set. Go. You’ll be up to Usain-like speed in no time.
COVID-19 UPDATES
• Do you have land and buildings that you are opting to tax? See here for details on the extension for notifying HMRC on the decision to opt to tax.
• HMRC will be restarting its debt collection work and will be contacting customers who have fallen behind with their tax during this difficult time. See here.
• Did you defer your VAT payments between 20 March and 30 June 2020 due to COVID-19? This scheme has closed and if you have not paid or made arrangements to pay you may be charged a 5% penalty. See here.
OTHER KEY UPDATES
• See here for the Trade Tariff Tool if you move goods from Great Britain to Northern Ireland.
• Excise goods exported from GB to the EU will be treated the same as goods exported to the rest of the world. The guidance has been updated with information regarding the evidence to be retained when exporting excise goods using the CSE through a RoRo port. See here.
• Do you have an overseas business that is not established in the EU and not VAT registered in the UK? Did you have difficulties obtaining a certificate of status? If so, you may be entitled to a repayment of VAT. See here.
• If you need help classifying your goods correctly for customs purposes, find out more about using the Trade Tariff Tool here.
• Are you using simplified declarations to bring goods into GB from the EU? For an explanation on how and when to make a delayed supplementary declaration, see here.
• Take a look at the updates to the EU’s e-commerce package here.
• Do you import or export goods such as oil, gas and utilities through a pipeline or power line? See here for an explanation on simplified declarations.
• Sell goods from NI to the EU? See here for more information on how to register for the One Stop Shop Union scheme.
• When re-importing goods to the UK you may be able to claim relief to pay less Customs Duty and VAT.
• Have you unintentionally found yourself in receipt of goods imported into the UK without customs clearance in place? HMRC’s policy is set out here.
• See here for the changes relating to border controls and the introduction of full controls to start 1 January 2022.
CASES
• Do you provide outsourced loan services from initial transfer of funds to the borrower? If so, you may be exempt from VAT. See Target Group: outsourced loan servicing is subject to VAT – CA.
• Income Tax investigation treated average earnings as VAT inclusive. See CB: Turnover established by income tax investigation treated as VAT-inclusive – CJEU.
• Do you supply intermediary services in the sale of guarantee extensions? If so, see C-695/19 Radio Popular.
• Are you a bingo club, casino or arcade that has slot machines? Did you know supplies on a slot machine are chargeable to VAT at the standard rate and were never exempt? See The Rank Group Plc and 2016 G1 Limited v HMRC.
• Are you a taxicab driver and unsure whether charges for insurance are separate and exempt from VAT? See Black Cabs Services Ltd.
• NHS can reclaim costs relating to non-business activities. See Milton Keynes NHS: COS VAT.
THAT’S A WRAP
We recently put out the latest episode of our No Bull Podcast. It’s all about ‘Brexit-proofing’ your business and untangling the trade rules, with Damian Shirley, our VAT Partner, and Helen Channer, our VAT Senior Manager. Listen back to the whole thing below:
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