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VAT liability of E-Publications

During the most recent Budget, it was announced that VAT applied to certain e-publications was to be scrapped, with supplies of qualifying items to be liable to the zero rate of VAT from 1st December 2020 to reflect the VAT treatment of their physical counterparts. HMRC have announced that this change has been brought forward and is now effective from 1st May 2020. Up to this date, supplies of e-publications are liable to the standard rate of VAT.

VAT Liability of School Holiday Clubs

HMRC have published a brief relating to the VAT treatment of school holiday clubs. This update comes as a result of a case heard by the First-Tier Tribunal in relation to RSR Sports Limited and will be of significance to any business making supplies of this nature, particularly those who may have treated these supplies incorrectly and as a result could be liable to recover output VAT that has been incorrectly overpaid.

VAT on Unredeemed Vouchers

The Upper Tribunal heard an appeal by Findmypast of the First-Tier Tribunals decision to reject the their claim for repayment of VAT which had been incorrectly accounted for on unredeemed vouchers purchased for accessing.

VAT Requirement for Security

As part of HMRC’s powers in the administration and collection of VAT, they are able to issue notices to taxpayers requesting that they give security for payment of any VAT which may become due in the course of providing goods/services, if HMRC believe this necessary for the protection of the revenue. In some instances, this can be a condition of supplying goods/services under a taxable supply and for the repayment of input tax, which can be claimed to the extent it is incurred in the course of making taxable supplies.

VAT on Cross Border Supplies

The European Commission have put forward a series of proposals with the intention to facilitate cross border trade as a whole and combat cases of VAT fraud in relation to these supplies. Included in these proposals are potential thresholds, due to be introduced in 2018, for cross border supplies of electronic services.