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HMRC to repay VAT charged on golf clubs' green fees following EU court decision.
No real improvement in VAT collected by EU member states.
VAT on energy-saving products to rise in compliance with EU legislation.
New rates from 1 September.
Compulsory VAT charges to be introduced in England.
No VAT apportionment required between business and non-business activities.
Revenue and Customs Brief 12/2015 covers the VAT liability of verandas sold with caravans in light of the Upper Tribunal’s decision in Colaingrove v HMRC that the sale of a static caravan with a veranda is a single supply for VAT purposes.
Revenue and Customs Brief 13 (2015): reduced rate of VAT for the installation of energy saving materials confirms that the government is considering the implications of the Court of Justice of the EU’s decision that the UK has applied the reduced rate on for the installation of energy saving materials too widely.
If there are to be any legislative changes, they will not be implemented before FA 2016. Until then, supplies of the installation of energy savings materials will continue to be reduced rated.
The charity sector has been buoyed by the publication of fresh HMRC guidance on the VAT treatment of supplies of direct marketing.
The move comes in light of criticism from charities of unclear Revenue information following a policy change that meant printing and delivery of mail packs would no longer be zero rated
The long-running Littlewoods case looks set to continue, with HMRC seeking leave to appeal the latest decision in favour of the catalogue-based retailer.
The company and several similar businesses overpaid a total of £204m in VAT on mail order sales commissions between 1973 and 2004, and later received a repayment with simple interest – which sparked litigation seeking compound interest.
The European Commission (EC) has proposed ways to remove VAT barriers in the cross-border delivery of goods ordered and services received online.
The communication A Digital Single Market Strategy for Europe acknowledges that the administrative burden of VAT compliance and distortions of competition cause problems for businesses.
Charities have extra time to get to grips with new VAT rules, following concerns by the Charity Tax Group (CTG).
HMRC this week announced an extension to the transitional period during which a retrospective concession will apply for direct mail to be treated as a single composite supply of zero-rated delivered goods.
The end date is now 31 July 2015, having originally been 1 April, after the tax department ruled last year that the printing and delivery of mail packs for charities and other organisations should no longer be zero-rated for VAT purposes.
