Indirect Taxes


The CIOT response to the technical consultation on Amendment to VAT Regulation 38: Statutory Instrument 

HMRC has published consultation documents for the draft legislation that amends the scope of the VAT relief for the installation of energy-saving materials (ESMs) in residential accommodation, to comply with CJEU ruling C-161/14 - Commission v United Kingdom dated 4 June 2015. The document pack includes the draft legislation, draft TIIN, draft explanatory memorandum and draft guidance.

MPs took a break from Brexit to debate beer taxation on March 28th, in a debate allocated by the Backbench Business Committee. The prime movers in obtaining the debate were three officers of the All Party Parliamentary Beer Group – Mike Wood and Nigel Evans (both Conservative) and Ruth Smeeth (Labour).

The CIOT comments sent to HMRC on the call for evidence Electronic sales suppression.

Following the announcements in Budget 2018, HMT has published its plastic packaging consultation

A private member’s bill seeking to raise the VAT registration threshold and increase the number of exemptions was debated by MPs last week but will not become law.

With a no-deal Brexit appearing increasingly likely, HMRC is now warning that, in that event, 245,000 businesses would face a tsunami of new customs declarations, tariffs and VAT obligations after 29 March.

The CIOT response to the HMRC call for evidence on Amendments to Tax Returns.

The most significant Brexit-related development of the week was a series of votes in the House of Commons on amendments to an anodyne government motion, which gave different groups of MPs a chance to suggest alternative ways forward on Brexit. The key results were that Parliament failed to ‘take control’ of the Brexit process from government, and MPs indicated that the withdrawal agreement could get parliamentary support if the Irish Border backstop is replaced with something more acceptable to MPs. With the EU repeating its opposition to reopening the withdrawal agreement this will not be achieved easily. There is, however, increasing speculation that compromise might be possible – with both the EU and Labour – around a UK-EU customs union.

The government continues to lay Brexit-related statutory instruments (SIs) in preparation for a possible ‘no deal’ exit from the EU, including a number in the tax area. Since the start of 2019 six VAT-related SIs have been laid, plus three relating to Excise Duty and one relating to Customs.