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