VAT

Liquidated Damages: retrospective VAT treatment & corrections

by Berthold Bauer on September 8, 2020

Following EU Tribunal Cases (VAT being a European Tax and largely unaffected by Brexit); HMRC have changed their stance on many forms of compensation payment – and with particular regard to the Construction Industry – how Liquidated Damages are treated.

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Berthold BauerLiquidated Damages: retrospective VAT treatment & corrections

VAT and the Public Sector: Reform to VAT Refund Rules

by Berthold Bauer on September 1, 2020

For a number of years HM Treasury have been considering potential reforms to the Contracted-Out-Services – numbered 1 through to 76 – which you will be familiar with from our reports.  As a quick recap these rules [Section 41 VATA94] are the mechanism with which NHS and Government Departments (GD) reclaims VAT on certain outsourced services.

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Berthold BauerVAT and the Public Sector: Reform to VAT Refund Rules

Extension to Import and VAT relief

by Berthold Bauer on July 28, 2020

HMRC announced on Friday that the period for which relevant medical supplies, equipment and protective garments brought into the UK free of import duty and VAT has been extended for three months.

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Berthold BauerExtension to Import and VAT relief

HMRC will mandate MTD for all businesses from 1st April 2022

by Berthold Bauer on July 21, 2020

HMRC have updated their guidance today to confirm that all businesses, regardless of annual turnover, will be required to register for Making Tax Digital as of 1st April 2022. This will extend to any businesses which have registered voluntarily for VAT.

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Berthold BauerHMRC will mandate MTD for all businesses from 1st April 2022

VAT on NHS Salary Sacrifice Lease Cars: Court of Appeal rule in favour of the NHS

by Berthold Bauer on July 14, 2020

Another bit of good news for the NHS – the Court of Appeal has recently supported the Upper Tribunal’s previous decision that lease cars provided under a salary sacrifice are not a supply for VAT purposes (as a result of the ‘de-supply’ order – “Value Added Tax (Treatment of Transactions) Order 1992 SI 1992/630”). 

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Berthold BauerVAT on NHS Salary Sacrifice Lease Cars: Court of Appeal rule in favour of the NHS

Hospitality & Tourism Sector VAT Reduction

by Berthold Bauer on July 8, 2020

The Chancellor has today announced that the Hospitality and Tourism sectors will benefit from a substantial reduction of the standard rate of VAT from 20% to 5% for a period of six months (Wednesday 15 July 2020 through to Tuesday 12 January 2021).

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Berthold BauerHospitality & Tourism Sector VAT Reduction

Rumour Mill Friday – UK VAT Rate Cut

by Berthold Bauer on June 19, 2020

Following Germany’s decision to reduce VAT from 19% to 16% in order to boost consumer spending and Rishi Sunak’s contemplation of a similar action here in the UK, what are the chances and the pundit’s opinions?

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Berthold BauerRumour Mill Friday – UK VAT Rate Cut

VAT & Import Duty Updates

by Berthold Bauer on June 5, 2020

HMRC announced this week a few further VAT/ import duty reliefs which will support the NHS through this crisis:

  • when importing certain animals for scientific research, the guidance can be found here
  • when importing certain therapeutic substances like blood-grouping or tissue typing reagents (from plant, animal, other or human origin), the guidance can be found here
  • when importing certain substances used for non-commercial biological and chemical research, the guidance can be found here

It is hoped that the above reliefs will support the NHS in their research and testing in relation to Covid-19 without VAT and customs duty being an additional barrier.  Trusts should be aware that the reliefs exist, as action may need to be taken in order for them to apply. 

Please don’t hesitate to contact one of the Berthold Bauer NHS VAT team if you have any questions about the reliefs.

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Berthold BauerVAT & Import Duty Updates