Welcome to the July 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 Revenue and Customs Brief 9 (2021): VAT liability of daycare services supplied by private bodies in England and Wales. The Brief explains HMRC’s position following the judgment of the Court of Appeal in the joint appeals of LIFE Services Ltd and The Learning Centre (Romford) Ltd which became final when the Supreme Court refused permission to appeal earlier this year.
- HMRC has updated its guidance Changes to notifying an option to tax land and buildings during coronavirus (COVID-19). The guidance temporarily extends the time limit to notify HMRC of a decision to opt to tax land and buildings from 30 to 90 days, from the date the decision to opt was made. The updated guidance extends the effect of this change so that it applies to decisions made between 15 February 2020 and 31 July 2021.
- HMRC has published Revenue and Customs Brief 10 (2021): repayment of VAT to overseas businesses not established in the EU and not VAT registered in the UK. The Brief explains the actions HMRC is taking to enable overseas (not established in the EU) businesses to claim VAT refunds where they have been having difficulties in obtaining a certificate of status. This applies to the prescribed year 1 July 2019 to 30 June 2020.
- The European Commission has published guidance on changes to the VAT rules on cross-border business-to-consumer e-commerce activities, which have applied since 1 July 2021. The rationale for these changes is to overcome the barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments. HMRC has published guidance in relation to the changes in its weekly bulletin, including information about the UK VAT e-commerce systems that have linked to the EU's VAT e-commerce package since 1 July 2021.
- Under new guidance published by HMRC, if businesses sell low value goods in consignments not exceeding £135 in value into Northern Ireland and are registered for the VAT Import One Stop Shop (IOSS) in the EU, they must inform HMRC of their IOSS registration number. The guidance provides a link to a service which enables businesses to comply with this obligation.