UK tax authorities have issued a new policy paper on extending the Making Tax Digital for VAT programme. Currently, VAT registered businesses trading above the compulsory VAT registration threshold must comply with digital VAT filing. From April 2022, VAT registered businesses that do not trade above the compulsory threshold will also be required to operate […]
Russia is limiting VAT exemptions on software licences. Foreign companies that licence software or databases to customers in Russia will now have to pay Russian VAT. The software licence VAT exemption will now be limited to certain domestic software companies that are included in the official national register of software companies. Advertising software is also […]
VAT receipts in the UK declined by 1.5% in 2019-2020, compared to the previous financial year. The HMRC VAT bulletin compiles data on the latest VAT trends. The report notes that the decrease was anomalous. UK VAT receipts have increased consistently from 2010 to 2019. The decline in VAT in 2020 is attributed in part […]
VAT is everywhere but it’s a complexity of small differences. This article gives simple solutions to the complex, expensive and confusing problem of global VAT, In theory, VAT is simple. The principles are easy enough to understand. There is broad agreement on how to regulate and collect VAT. If you know how VAT works in […]
Italy, Belgium and Cyprus are among the EU countries that have confirmed that UK companies will not need a fiscal representative for VAT registration. UK businesses will welcome the news. Clarity on VAT registration and compliance requirements makes it much easier to plan ahead. The source of uncertainty Many EU states require businesses based outside […]
The UK is introducing a new domestic VAT reverse charge process for the construction industry from 1 March 2021. The new regulations change the way contractors must manage VAT, under certain conditions. In terms of the new VAT reverse charge for building and construction services regulations, subcontractors will no longer account for VAT. Rather, when […]
A Dutch court of appeal has upheld a ruling that Deliveroo drivers are effectively employees and not independent contractors. The lawsuit was initially filed by Dutch trade union FNV. In the 2019 lower court ruling, the judge in that matter found that, despite the unique nature of gig economy employment, the relationship is nonetheless an […]
UK MPs have called for reduced VAT on energy-efficient home improvements. The parliamentary Environmental Audit Committee (EAC) recommends incentives to promote enhanced home insulation and more efficient heating, as well as steps to make electric cars and other electric goods more affordable. The EAC report also recommends that the UK government consider applying carbon taxes. […]
Thailand is implementing digital services VAT from 1 September 2021. Non-resident companies providing online services to customers in Thailand will be liable for 7% VAT. The VAT registration threshold is 1.8 million Baht per annum. Thai authorities have long noted the need for digital services VAT, finally passing draft legislation in 2020. The digital services […]