Following the announcement at Autumn Statement 2017 that the Office of Tax Simplification (OTS) had been asked to carry out a review on the simplification of VAT, on 28 February 2017, the OTS published its interim report on reform of VAT which comprised a progress report and a call for evidence following the completion of the first phase of its work. The eight areas it is specifically looking at are the high registration thresholds, VAT multiple rates, partial exemptions, options to tax, special accounting schemes, appeal procedures, formal ruling system and making tax digital.
In its call for evidence, it has asked for comments regarding how it can create a sustainable VAT system for the future that imposes minimal burdens on businesses. In particular, it seeks:
• evidence of how the above areas cause difficulties and complexities
• ideas for how to improve the position
• details of any areas for simplification that it has missed.
The OTS has asked for responses by 30 June 2017 and will publish its recommendations in autumn 2017.
A copy of the OTS’s report can be found here.