VAT and value shifting
The current law in section 19(4), Value Added Tax Act 1994 (VATA 94) is non-prescriptive and some businesses pay less VAT by apportioning more consideration (or ‚ shifting the value‚ ) to non-standard rated items.
Although the broad principles of the new rules are set, businesses can:
comment on how these can be written into UK law draw attention to any issues the new rules present highlight whether greater clarity is required in some areas
Please send any comments to technical [at] ciot.org.uk by 17 March 2021.