On February 26, 2026, the FTT ruled that the applicants EV charging model qualifies for a 5% reduced VAT rate, allowing public charging supplies under specific conditions to be treated as domestic use, challenging HMRC's standard rate application. On February 26, 2026, the First-Tier Tribunal (FTT) published its ruling in a case. A UK social enterprise installing and operating community EV chargep... Read more

VAT Notice 703 has been updated to clarify zero-rated VAT for UK exports, ensuring compliance with current legal standards and customs procedures as of February 13, 2026, emphasizing documentation and specific export conditions. VAT Notice 703, HMRC's guidelines for applying zero-rated VAT to products exported from the UK, has been amended. The modifications eliminate obsolete customs language an... Read more

Officials are considering reducing VAT on public EV charging from 20% to 5% to match home charging rates, addressing tax disparities. This follows concerns over a pay-per-mile scheme starting in 2028, aimed at ensuring EV adoption remains viable amid rising costs. Officials are exploring a reduction in VAT on public EV charging from 20% to 5%. This would align it with the reduced VAT rate paid by... Read more

The UK will mandate e-invoicing by 2029 through a 4-corner model, deferring real-time reporting (RTR) until after e-invoicing is established. Despite broad support for RTR among respondents, it requires clear standards, governance, and phased implementation. HMRC underscores that e-invoicing alone cannot pre-fill VAT returns, but it may inform future products. Respondents highlighted benefits of R... Read more

VAT is a crucial legal requirement that dictates service taxation and registration in foreign jurisdictions. Being in a no-VAT zone doesn't negate risks of non-compliance. Without proof of B2B transactions, suppliers may face retroactive B2C tax liabilities. The article highlights the need for robust B2B validation under the "Two-Item Rule." B2B transactions benefit from reverse charge mechanisms,... Read more

UK confirms mandatory electronic invoicing for VAT starting April 2029, giving businesses time to prepare. The UK government has confirmed mandatory electronic invoicing for VAT purposes starting in April 2029. According to a December 10 statement from the Association of Taxation Technicians (ATT), the extended timeline gives businesses more time to prepare. Per the government's November 26 anno... Read more

Since Brexit, VAT rules have notably shifted, presenting compliance challenges for cross-border businesses. VAT fiscal representation enables non-established businesses to meet local VAT obligations via a local professional. The representative ensures compliance and is often jointly liable for VAT debts. While UK businesses may need one in some EU states, EU businesses typically register directly... Read more

The UK will mandate e-invoicing for all VAT invoices by 2029, enhancing efficiency and compliance with a phased rollout and detailed plans to be announced in Budget 2026. The UK Government has announced mandatory e-invoicing for all VAT invoices (B2B and B2G) starting in 2029, with a detailed roadmap to be published at Budget 2026. The move aims to modernise tax processes, boost efficiency, produc... Read more

This document aims to explain how online sales are handled in the UK. In the UK, there are various requirements for online sales, which implies that there are specific requirements that must be fulfilled according to The Consumer Rights Act 2015, The Consumer Contracts Regulations and The Electronic Commerce (EC Directive) Regulations 2002. Read more

The UK may extend the Deemed Supplier model to all online marketplace sellers, impacting VAT collection. Proposed changes eliminate the VAT threshold, risking business viability and causing price inflation. The new model complicates VAT compliance while favouring larger platforms, potentially reducing competition and consumer choice. Careful consideration of these consequences is essential before... Read more

HMRC requires digital platforms linking buyers and sellers for goods/services to register, even if no sellers need reporting. Sellers earning under £1,700 from fewer than 30 sales are exempt. According to HMRC, if an app or website links buyers and sellers to proviFde goods or services, it will be included in this category. Furthermore, the platform needs to store or readily compute the amount pa... Read more

HMRC has digitalized its VAT error correction process, replacing form VAT652 with an online system for improved efficiency. Errors under £10,000 or between £10,000 and £50,000 (less than 1% of total sales) can be adjusted in VAT returns. Exceeding thresholds must be reported directly to HMRC. Businesses use Government Gateway credentials for online corrections, while VAT-exempt businesses may noti... Read more

In certain situations, customers must account for VAT due, such as purchasing services from overseas suppliers, deregistering goods with claimed input tax, applying the domestic reverse charge (DRC), and supplying mobile phones/computer chips. Failure to do so can result in HMRC penalties and interest. Simple accounting entries can resolve these issues, but accurate recording is crucial for avoidi... Read more

VAT is a UK tax on goods and services, with rates ranging from 20% to 0%. Businesses must register if their taxable turnover exceeds £90,000 in the past 12 months, acquire a VAT-registered business as a going concern, or purchase goods or services VAT-free from non-UK countries. Exceptions include unregistered supplies, zero-rated supplies, and exempt supplies. Businesses must maintain accurate VA... Read more

On 29 September 2025, UK Chancellor Rachel Reeves reaffirmed no increase to the standard 20% VAT rate, per the 2024 election manifesto. However, the 26 November 2025 budget may raise funds by adjusting zero-rated or 5% VAT rates, potentially cutting the £90,000 VAT registration threshold, reducing domestic fuel VAT from 5% to 0%, or imposing VAT on private taxi/ride-sharing platforms. VAT Exemptio... Read more

This notice outlines how to correct VAT record errors, amend submitted VAT Returns, and claim refunds for overpaid VAT, underclaimed credits, or disputes with HMRC's VAT decisions. Prompt correction prevents penalties and interest. Correcting VAT records immediately, amending invoices, and correcting submitted VAT returns are crucial steps. Penalties apply for careless or deliberate errors, and the process involves reporting errors online or contacting HMRC. Refunds for overpaid VAT, incorrectly charged VAT, and under-claimed input tax can be claimed within 4 years. Reimbursement schemes are available for those who claim refunds but bear VAT costs. Read more