Carousel_Arrow Chat IHT_trust_wills IR35 Login Mobile Menu Share Share Email SubMenuMobile VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Go grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation
icon_cookie Created with Sketch. Cookies

We use cookies on this website. You can choose to accept them all or to opt out of some. You can change your consent at any time by opening this window again

This includes all necessary technical and session cookies, plus performance, tracking and persistent cookies.

If you choose this option, we will block all performance, targeting and persistent cookies. Many parts of this site will then not work.

Please read the full details in our Cookie Statement.
Markel Tax

13 Mar 2018

Alternative method of VAT collection – split payment

At the Spring Statement, the government announced a consultation on alternative methods of VAT collection.

This consultation will seek views from a wide range of stakeholders on possible options for how a potential split payment mechanism could operate to combat online VAT fraud. A split payment would enable extraction of VAT in real time and for deposit with HMRC. This would reduce the opportunity for non-payment of VAT by overseas merchants trading online through sites such as Amazon and eBay.

The consultation sets out the government’s emerging thoughts, based on engagement with stakeholders so far. It sets out how the potential mechanism could work, how it could be enforced, and considers a number of options for how the VAT could be accounted for.

HMRC will be running a series of collaborative workshops to test emerging views over the spring and summer.

The consultation closes on 29 June 2018.
Tagged Spring Statement
Next article in series

13 Mar 2018

Corporate tax and the digital economy: position paper

The speed and scale of the changes caused by digitalisation have had implications for the UK tax system especially in respect of corporation tax, where the development of certain business models has challenged the understanding of how and where companies create value and ultimately how that value is taxed.

Receive your regular Markel round-up

Sign up to our monthly newsletter

Strategic partners

  • Tolleys
  • Institute of Financial Accountants
  • BTC Software
  • AccountingCPD.net
  • Lovell Consulting