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Budget 2020: VAT round-up

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

Budget 2020: VAT round-up

Introduction

OK, Keith would have been better off doing this so you’ll have to do with me.

Application of zero rate to e-publications

HMRC had recently lost against News International surrounding the VAT status of E-publications.

Budget 2020 has now made the position clear (and not the usual Government clarification which involves changing the law to whatever HMRC argues!)

The government has promised to legislate for a zero rate of VAT on e-publications. In other words, giving e-books, e-newspapers, e-magazines and academic e-journals the same VAT status as their physical counterparts.

We are told that this will take effect from 1 December 2020.

Zero rating of VAT for women’s sanitary products

The tampon tax is no more!

The government will introduce a zero rate of VAT for women’s sanitary products on 1 January 2021 now we are free of our pesky EU overlords!

Partial Exemption and the Capital Goods Scheme

It was clear that the aim of simplifying the VAT system would quickly need to pay a visit to both the partial exemption and the capital goods scheme.

Both are so complicated you need to get someone like Keith Miller to illuminate matters.

Consultation ahoy!

VAT financial services: industry working group

The Government will create an industry working group to examine VAT on financial services.

Watch this space.

VAT treatment of goods from overseas sellers

Yet another VAT consultation.

Here, the Government will informally consult on options regarding the VAT treatment of goods from overseas sellers.

This will include consideration of low value imports and goods located in the UK when sold to UK customers.

Reverse charge

In September 2019, the Government announced that it was delaying the introduction of the VAT domestic reverse charge for building and construction services.

This will be rebooted and takes effect from 1 October 2020.

 

If you have any VAT queries then please get in touch.

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