February 4 2021

United Kingdom Updates EU Exit Transitional VAT Provisions

Source: IBFD Tax Research Platform News

On 2 February 2021, HM Revenue & Customs (HMRC) updated its guidance on the EU exit transitional provisions for value added tax (VAT). This guidance concerns the VAT treatment of transactions that span the end of the transitional period and gives a broad overview of the changes to the VAT treatment of the following items:

  • goods;
  • fulfilment houses;
  • services;
  • call-off stock; and
  • financial services.

There is a comment on the Tour Operators Margin Scheme, in particular three paragraphs that, according to the guidance, have force of law concerning the time of supply for VAT accounting.

The information on goods in a warehousing regime has, also, been updated.