Welcome to the February 2021 edition of RPC's [email protected], an update which provides analysis and news from the VAT world relevant to your business.
- HMRC has published guidance on how UK businesses registered for VAT that are claiming a VAT refund in another country can ask HMRC for a certificate of status to confirm they are trading in the UK
- HMRC has published a consultation on VAT and value shifting, which seeks views on a proposed revision of the rules for apportioning the consideration between supplies with mixed liabilities in a single transaction. The consultation will be of particular interest to businesses that sell goods or services for a reduced price as part of a package or 'bundle'. The consultation closes on 30 March 2021.
- HMRC has published a policy paper in which it confirms that after receiving representations from businesses and their representatives, it has decided to apply the updated VAT treatment set out in Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments from an unspecified future date. HMRC has confirmed that it will shortly issue revised guidance and a new Revenue and Customs brief to explain what businesses need to do, which will include guidance on what to do if they have already changed how they treat such payments because of this Brief.
- HMRC has updated Energysaving materials and heating equipment (VAT Notice 708/6), which provides guidance on how to account for VAT for contractors and subcontractors installing energysaving materials and grantfunded heating equipment. Section 2.17 of the notice has been amended with updated information about air source heat pumps.