UK chancellor of the exchequer, Philip Hammond, yesterday delivered his spring statement, and contained within it was details of 3 consultations to be undertaken concerning UK VAT.
The first of these will look at the impact of the application of the standard rate of VAT upon 'tourism' supplies in Northern Ireland (i.e. hotel rooms, restaurant meals). This has been an issue which has been around for some time, particularly as the reduced rate of VAT is applied to many similar services in Ireland.
A consultation has also been launched regarding a potential split payment system which could apply to online sales, in order to ensure that VAT paid is received by HMRC. Under such plans, the payment provider could possibly be required to withhold the VAT element of the payment and pay this directly to HMRC.
Finally, a consultation will be undertaken regarding the UK VAT threshold, and the impact of potentially changing this.