Articles about Vat

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HMRC clamps down on gov bodies wanting to reclaim VAT on IT kit

Government bodies seeking to reclaim cash from the taxman for expensive IT purchases will face more stringent compliance rules from April. Currently bodies can claim back VAT on a number of services once the invoice has been paid to their supplier. However, from 1 April the recovery rules will be changed, limiting the period …
Kat Hall, 24 Feb 2016
Bitcoin

No VAT on Bitcoin, rules ECJ, but capital gains still apply

Transactions of and for Bitcoin are not subject to value-added tax (VAT) the European Court of Justice (ECJ) has ruled today. A judgment delivered by the ECJ today stated that "transactions to exchange a traditional currency for the 'Bitcoin' virtual currency or vice versa" are not subject to VAT. The case arose due to a …
HMRC photo, Gov.uk

HMRC U-turns on VAT rules for cloud

HMRC has U-turned on its proposals to hand out VAT refunds just for large system integrators, while forcing public sector bodies purchasing off-the-shelf "cloud" services to pay the full whack. Last year the body published guidelines that would effectively penalise public sector organisations for buying cheap, standardised off …
Kat Hall, 16 Oct 2015
Amazon Kindle 2

Top Euro court ends mega ebook VAT slash in France, Luxembourg

Your Kindle purchases are about to get dearer following a decision by the European Court of Justice (ECJ) that France and Luxembourg can no longer charge a reduced rate of VAT for ebooks. Both France and Luxembourg set reduced rates of value-added tax for ebooks in 2012, and the European Commission took issue with this, hence …
eBay

Crackdown on eBay sellers 'failing to display' VAT numbers

Blighty's Trading Standards has reported more than 200 non-EU sellers to eBay for failing to display VAT numbers – a figure thought to "barely scratch the surface" of traders breaching the rules, El Reg can reveal. Under e-commerce regulations, a VAT number must be easily, directly and permanently accessible. As an …
Kat Hall, 2 Feb 2015

Not app-y with VAT: Apple bumps up prices in Blighty, Europe, Canada

Updated Apple is enjoying a super-soaraway January: its App Store has cleared nearly half a billion dollars in sales in just the first seven days of the month, we are told. New Year’s Day set the record for the largest number of App Store sales in a 24-hour period, and Apple reports sales in 2014 were up 50 per cent on the previous …
Iain Thomson, 8 Jan 2015
channel_teaser_money_top

Brit iPad sellers feel the pain of VAT-free imports

A number of iPad sellers based outside the UK are selling cut-price fondleslabs in Blighty after seemingly bypassing UK VAT payments, a Register analysis can reveal. Under UK tax law, sellers have to declare 20 per cent VAT. But El Reg has discovered a number of sellers do not have listed VAT numbers and are selling iPads at a …
Kat Hall, 2 Jan 2015
The European flag

EU VAT law could kill THOUSANDS of online businesses

New EU tax rules that come into force on 1 January could kill thousands of mini and micro online businesses. The new VAT rules have been on the cards for six years and are ostensibly aimed at preventing big companies (yes, we mean you, Amazon, Apple and Starbucks) from claiming that all their European profit is made in …
Jennifer Baker, 17 Dec 2014

Whitehall at war: Govt’s webocrats trash vital digital VAT site

Special Report Open warfare has broken out in Whitehall after the Government’s own much-hyped in-house IT team, GDS, publicly trashed a new VAT service vital to small digital businesses. The Register understands the service works well - but didn’t use GDS and was failed for meeting its taste guidelines. This week the Government Digital …

HMRC dishes out tax rewards to GOV.UK... for inking deals with MEGABUCKS SIs

Departments using large system integrators are eligible for VAT refunds from their IT, while those purchasing off-the-shelf "cloud" services will be entitled to nada, according to the latest draft HMRC guidance. The guidance appears to directly contradict moves by the Cabinet Office to get departments to buy cheap, …
Kat Hall, 13 Nov 2014
euros_channel_money

VAT's all folks: Telecoms and services tax to be set at consumer's homeland rate

VAT relating to cross-border business-to-consumer transactions will be charged at the rate in the country where the customer is based, rather than that of the supplier, under new EU rules to take effect in 2015. Explanatory notes on new VAT rules for telecoms, broadcasting and electronic services have been published by the …
OUT-LAW.COM, 8 Apr 2014
channel_teaser_money_top

3 Brits banged up for £300k VAT scam

Three men have been jailed for setting up nine totally fictional firms so that they could get away with £300,000 in a VAT scam. The men set up bogus companies including a clothes manufacturer, a publishing house and a software engineering company and then submitted VAT repayment claims for the businesses, the HMRC said today. …
Lord of the Rings: Extended Edition Blu-ray

High Court asked to keep 'cheap DVD' VAT loophole open

The English High Court will tomorrow begin an investigation to determine whether online retailers should be allowed to avoid paying VAT on CDs, DVDs and Blu-ray Discs. The judicial review, demanded by the Governments of Jersey and Guernsey, follows Chancellor George Osborne's decision to close the Low Value Consignment Relief …
Tony Smith, 12 Mar 2012
The Register breaking news

Ebooks must stay fat with VAT, blame the EU, MPs told

When it comes to applying VAT to ebooks, the UK government remains bound by EU law, the Exchequer Secretary to the Treasury told MPs yesterday. In October 2010 HM Revenue & Customs described the process of supplying "text by electronic transmission" via the internet - such as Amazon flogging ebooks on its Kindle Store - as …
Team Register, 13 Dec 2011
homeless man with sign

UK.gov moves to close VAT loophole on etailers

The UK government is planning to close the loophole in tax law that was allowing online retailers to funnel goods through the Channel Islands and thereby evade import VAT. The Exchequer Secretary to the Treasury David Gauke told the Commons yesterday that there would be further reforms to the relief from import VAT known as …
channel

Play.com swallowed by Rakuten

Online DVD and CD seller Play.com has been flogged to Japanese web conglomerate Rakuten for £25m in cash. The transaction comes months ahead of a government clampdown on the tax loophole that the Channel Islands-based etailer had exploited over the 13 years since it was founded. This is the third acquisition that internet …
Paul Kunert, 23 Sep 2011
The Register breaking news

Taxman recruits fricking tax-collecting robots

Her Majesty's Revenue and Customs is unleashing an army of fricking robots to find VAT evaders and eBay traders. The robots are the web-spider variety rather than an actual RoboTaxman. But they will target "invisible tax evasion" by those trading on e-marketplaces and offering private tuition as well as tradesmen like …
John Oates, 13 Jun 2011
The Register breaking news

Virgin Media gets VAT refund from HMRC

Virgin Media has received a refund of £81.5m from HM Revenues and Customs (HMRC) covering VAT payments. The telco said in a short statement that its current contingent liability had been reduced to £23.6m. Virgin Media didn't reveal any further details about the arrangement. In the company's last quarter ended 31 March this …
Kelly Fiveash, 7 Jun 2011

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