Articles about Vat

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

Online VAT fraud: Calls for government crackdown grow louder

Calls to crack down on companies selling goods online in the UK without declaring VAT have gathered pace, with a peer and another high profile individual now voicing their concerns that the practice is damaging UK business. The Register has previously reported on the seemingly growing number of sellers based outside Europe who …
Kat Hall, 08 Oct 2015
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
Old Bailey Lady Justice

Dodgy mobe dealer jumps on VAT carousel, gets 13-year ban

The director of now-dissolved mobile phone dealer Fima Consulting has been disqualified from managing a limited company for 13 years over his part in a £1m VAT scam, according to a UK government press release. Fiaz Razzak Malik was disqualified following an investigation by the Official Receiver at the Public Interest Unit, a …
Kat Hall, 13 Jul 2015

HMRC 'reluctant' to crack down on VAT fraudsters – tax ace

HMRC could be reluctant to crack down on VAT fraudsters selling goods online without declaring VAT because of the costs involved, a European tax expert has claimed. Rita de la Feria, a professor in tax law at Durham University, claimed that Amazon and eBay may be liable for VAT if they do not take due diligence and ask …
Kat Hall, 02 Nov 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 …
Jennifer Baker, 06 Mar 2015
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 intermediary …
Kat Hall, 02 Feb 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, 02 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
Fitbit

Strapping strap-on chaps strap in to tap that vat of greenbacks

Health-monitoring wearables maker Fitbit has set the price for its initial public offering (IPO) at US$20 per share. Fitbit said that, on Thursday, it will put 36,575,000 shares of class-A stock on the market with that twenty buck starting price. That would add up to approximately US$731.5m (£461m) in total sales, though that …
Shaun Nichols, 18 Jun 2015
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, 08 Apr 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 Service …
Andrew Orlowski, 05 Dec 2014

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 year …
Iain Thomson, 08 Jan 2015
China

China to set up its own virtual currency

The People's Bank of China (PBOC), China's central bank, hopes to launch its own virtual currency to cut the cost of handling paper money and to give the government more control of the country's money supply. A research team has been looking into digital currencies since 2014 and has achieved some encouraging initial results. …
OUT-LAW.COM, 22 Jan 2016

Sellers on Amazon and eBay 'defraud taxman of millions of pounds' - claims peer

Amazon and eBay have been accused of "collaborating with hundreds of overseas retailers to defraud the taxman of millions of pounds every day," during a House of Lords debate on the question of VAT evasion by overseas online retailers. Lord Lucas, who brought the debate, said: "It seems that HMRC has been very slow in its …
Kat Hall, 23 Dec 2015
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. …
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, 07 Jun 2011

First HSBC, now the ENTIRE PUBLIC SECTOR dodges tax

Exclusive The public sector is committing millions of pounds of tax fraud by incorrectly claiming money back on IT services which are not VAT recoverable. Under VAT rules, government bodies can claim back 20 per cent of the price of IT services that are managed by a large provider, as well as bespoke custom-made software. Money spent on …
Kat Hall, 17 Feb 2015
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
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
George Osborne, photo: HM Treasury

Google UK coughs up £130m back taxes. Is it enough?

Google is to pay £130m to settle a tax dispute with the British Government over how it account for revenues booked in the UK. More importantly for Treasury coffers Google will now "pay tax based on revenue from UK-based advertisers, which reflects the size and scope of our U.K. business,” a Google spokesman wrote in an email …
Drew Cullen, 23 Jan 2016
man crying, image via Shutterstock

Eight budget-friendly 1TB SSD data packers for real people

It wasn’t that long ago that the idea of a 2.5in 1TB class SSD roundup would have been laughable mainly because the very idea of a 1TB drive aimed at the consumer market would have been considered a flight of fancy. Until recently large capacity SSDs were the domain of the corporate and enterprise sectors with the accompanying …
Simon Crisp, 21 Jan 2016
CLion logo

JetBrains releases CLion - new cross-platform IDE for C/C++ users

Developer tools company JetBrains has released CLion, a new cross-platform IDE for C and C++. JetBrains is a survivor in a product area dominated either by vendor-specific tools (such as Microsoft’s Visual Studio and Apple's Xcode) or free open source projects (Eclipse and NetBeans). The core JetBrains product, IntelliJ IDEA, …
Tim Anderson, 17 Apr 2015
Bacon inhaler

Horrifying MOCK BACON ABOMINATION grown in BUBBLING VATS as ALGAE

There's disturbing and yet possibly uplifting news today on the science beat, depending how much you like eating bacon – and/or things grown in bubbling vats. That's because boffins in Oregon say they have managed to grow a kind of algae or seaweed in bubbling vats and that it is in every way as nice to eat as proper bacon …
Lewis Page, 15 Jul 2015

Irish electricity company threatens to cut off graveyard

Those readers who believe that death will finally deliver them from the attentions of utility companies are advised not to pop their clogs in Ireland, or at least not in County Kerry. That's the lesson to be learned from a letter allegedly dispatched by Electric Ireland to "The Occupant, Killiney Graveyard, Castlegregory, …
Lester Haines, 23 Nov 2015
The Register breaking news

Government flies kite for VAT changes

The Coalition Government seems to be serious about changing VAT rules which currently allow big retailers to dispatch items via the Channel Islands in order to avoid paying the tax. The exemption was designed to protect Guernsey's flower growers but has been exploited by the likes of Tesco and Amazon who can undercut prices for …
John Oates, 03 Mar 2011
The Register breaking news

Sony UK fuels Christmas cheer with VAT back promo

Sony UK is running a VAT back promo with most of the UK's consumer electronics retailers in the Christmas run-up. In other words you claim a 17.5 per cent discount on a bunch of gadgets bought between 28 October and 24 December. You have until 31 January to claim the cash back from Sony. The scheme includes "all 3D televisions …
Hard Reg, 27 Oct 2010
The Register breaking news

Tesco axes VAT from laptops

Tesco is knocking the VAT off a stack of notebooks and netbooks in a bid to get downturn-dashed Britons buying again. The deal will see prices in stores and online reduced by 20 per cent, effectively removing the impact of the new, higher VAT rate. A case in point: Samsung's Galaxy Tab, which Tesco was selling for £449, will …
Tony Smith, 26 Jan 2011

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, standardised …
Kat Hall, 13 Nov 2014
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 Low …
channel

Small biz calls for end date on enhanced 17.5% VAT

Small business lobbyists are calling on Chancellor George Osborne to review the 2.5 per cent hike in VAT once the UK budget deficit is back under control. From today the top rate of VAT goes up to 20 per cent. Retail analysts have warned that the real impact of this is likely to be price rises of between five and eight per cent …
John Oates, 04 Jan 2011
homeless man with sign

Channel VAT loophole shrunk, not shut

Budget '11 George Osborne is cutting the value of goods which can be sold without VAT, but he is not ending the system which allows retailers with warehouses in the Channel Islands to ship goods VAT-free to the UK. The tax hole has seen the likes of Amazon, Tesco and Play.com shift warehouses to the islands in order to sell mail-order DVDs …
John Oates, 23 Mar 2011
The Register breaking news

Woman with 15 IDs gets 7 years for multiple VAT fraud

A Bristol woman has been jailed for using a complex web of 15 different identities and companies to defraud the Revenue out of £118,000. 48-year-old Alison Reynolds was jailed for seven years yesterday for VAT fraud and police offences. Reynolds was found guilty of four charges of cheating the Public Revenue, one charge of using …
John Oates, 06 May 2011
fingers pointing at man

Osborne urged to end islands VAT-holiday by small-biz group

Chancellor George Osborne should end the right of companies to import low-value items VAT-free from the Channel Islands and do something to reduce petrol and diesel prices, says a small-biz body. Ahead of Wednesday's Budget various runners and riders are jostling for attention. The Forum of Private Business said it was time to …
John Oates, 21 Mar 2011
For Sale sign detail

VAT fraudster gets 9 years for refusing £40m bill

Emmanuel Hening, already serving the longest sentence ever secured against a VAT-fraudster, has seen another nine years added onto his sentence. A court last week added to his 15-year sentence because he has failed to repay £40m demanded by Her Majesty's Revenue and Customs. Vat fraudster Henning Hening, who has dual French- …
John Oates, 22 Nov 2010

Uber Australia is broke: 'We don't pay tax because we don't generate revenue'

The Netherlands is the natural place for Uber to bill its Australian customers, Airbnb only lives in Ireland because it's got the best skills pool, and Bermuda is beloved of Chevron merely because it has a good maritime safety record. Those were some of the more amusing outcomes of yesterday's Australian Senate hearing into …
Map showing track of the flight from the UK to Europe

EC probe into murky cross border e-commerce kicks off

The EU’s executive arm has officially launched its probe into the e-commerce sector to find out why Europeans aren’t buying across national borders much. The eCommerce investigation, which was announced in March, aims to identify and stamp out regulatory barriers to crossborder e-commerce. Over the next few weeks, the …
Jennifer Baker, 06 May 2015
Photo From <a target="_blank" href="http://www.shutterstock.com/pic-232507384/stock-photo-christmas-holiday-happy-girl-friends-looking-at-something-on-digital-touch-screen-tablet-pc.html?src=9mJhlJ8bDz_0JV9eZNUpyQ-1-34">Shutterstock</a>

UK retailers in TABLET PRICE SLASH BONANZA

Bad news for the big man in red - if Santa left a tablet under your tree he probably paid too much, as a massive glut of fondlesome devices has seen prices tumbling. You can buy tablets for under £30, but for just over that (including shipping) you can get a 7” Quad Core device, and Amazon is now chock-a-block with cheap …
Simon Rockman, 30 Dec 2014

Web Summit looks at new homes ... this time with sun and decent Wi-Fi

Web Summit – one of Europe’s biggest tech events, attracting more than 20,000 visitors – is on the lookout for a new home. Founded in Ireland by Paddy Cosgrave, the event, which has grown massively in recent years, has always been held in Dublin. But problems in accommodating its size have led organisers to consider other …
Jennifer Baker, 25 Aug 2015

El Reg lays claws on RockBLOCK Mk2 Iridium sat comms unit

Heads up Our chums at Rock Seven – supplier of Iridium satellite comms units to our audacious spaceplane ballocket mission – have announced the release of the RockBLOCK Mk2. The RockBLOCK MK2 In common with its predecessor, the new kit can "send messages of 340 bytes and receive messages of 270 bytes using Iridium Short Burst Data (SBD …
Lester Haines, 31 Mar 2015
Parliament House Canberra by Flickr user OzMark17 used under CC Share and Share alike licence

Australian online shoppers and Netflix to be fully taxed in 2017

Australia has decided to scrap a tax exemption for imported goods bought online. Australia levies a ten per cent “goods and services tax” (GST, think VAT, British readers and sales tax in North America) on wide range of goods, but currently exempts imported items valued at less than AUD$1,000 from the tax. The nation's now …
Simon Sharwood, 21 Aug 2015
amazon_SM

Amazon intros early VAT cut

The government’s VAT cut doesn’t take effect until Monday, but one online retailer just couldn’t wait and has already introduced it. Amazon has created a promotional code called “LOWERVAT” that’ll give you a reduced rate of VAT instead of the full 17.5 per cent. Presumably Amazon’s decided to take a small financial hit on each …
James Sherwood, 26 Nov 2008
trolley_shopping_648

Comparex: Just two buyers left in sales negotiations

Microsoft reseller titan Comparex has whittled down its list of prospective buyers to just two, The Channel can reveal. A sales process for the pan-regional reseller began some months ago with investment bank Jefferies sending out a commercial prospectus or Information Memorandum. Sources in the investment community told us …
Paul Kunert, 18 Sep 2015
The rather phallic tracks of the balloons seen on spacenear.us

EU Digital Single Market plan: We will compromise fast, and compromise early

The European Commission has finally unveiled its big Digital Single Market Strategy (DSM). Despite leak after leak over recent weeks, Digi Commissioners Andrus “The Robot” Ansip and Gunther H-dot Oettinger took to the podium together (for the first time) with due pomp and ceremony on Wednesday. But what they presented was a …
Jennifer Baker, 06 May 2015
The Register breaking news

ECJ ruling puts VAT on salary sacrifice schemes

Drugs giant Astra Zeneca should pay VAT on retail vouchers given to staff that form part of a salary sacrifice scheme, the European Court of Justice (ECJ) has said. The ruling could derail some similar schemes. Salary sacrifice schemes operate by allowing employees to receive vouchers or benefits instead of part of their …
OUT-LAW.COM, 19 Aug 2010
Embarcadero's RAD Studio 10

Farewell to Borland C++: Embarcadero releases Delphi and C++ Builder 10

Preview Embarcadero has released RAD Studio 10, including Delphi 10 and C++ Builder 10, a suite of development tools for Windows, Mac and mobile platforms. A new RAD Studio is a rather frequent occurrence. RAD Studio XE8 was released in April this year. The price is a hefty £3,612.60, plus VAT, for new users or £2,408.40 to upgrade. …
Tim Anderson, 01 Sep 2015
LG Display solar e-book viewer

E-book readers attract unwanted VAT

Many of those finding e-book readers under their Christmas tree have been surprised to discover that electronic titles attract value added tax, despite the dead-tree versions being VAT-free. As the UK VAT rate returns to its pre-recession level of 17.5 per cent, owners of e-book readers are finding out that they have to pay it …
Bill Ray, 14 Jan 2010

Malcolm Turnbull proposes taxing Google and Facebook ads

Australia's Communications minister Malcolm Turnbull has his eye on the revenues collected by multinational online ad platforms like Google. Apparently raising a white flag on the government stopping multinationals from shipping profits offshore to avoid tax, Turnbull has floated the idea of levying Australia's goods and …
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EC to amend VAT Directive

The European Commission has proposed (pdf) a series of measures, including changes to the VAT Directive, to prevent and detect VAT fraud. The Commission today adopted a Communication (pdf) presenting a short-term action plan with a list of future legislative measures to enhance the capacity of tax administrations to prevent or …
OUT-LAW.COM, 02 Dec 2008

Free ethical upgrade offered as Fairphone launches mobe No 2

Fairphone, the crowd-funded mobe maker, has launched its second model, and in marked contrast to others (a sideways glance at you Apple) has literally taken the lid off. Fairphone launched in 2013 with the aim of creating a mobile that was free from conflict minerals, and was generally more ethical all round. More than 10,000 …
Jennifer Baker, 18 Jun 2015