Commentary

V3.471 Capital goods scheme—simplification

Part V3 Supplies, acquisitions and imports

V3.471 Capital goods scheme—simplification

V3.471 Capital goods scheme—simplification

At Spring Statement 2019, it was announced that the Government would launch a call for evidence on potential simplification and improvement of the Capital Goods Scheme to ensure that it is as simple and efficient for taxpayers as possible. This follows on from the findings of the 2017 Office of Tax Simplification (OTS) VAT review. In November 2017, the OTS published its report, 'Value Added Tax: Routes to Simplification' which made recommendations on the operation of various aspects of VAT, including PE and the CGS.

The Capital Goods Scheme (CGS) (see V3.470) is an area of VAT which can involve complex calculations in determining the recoverable input tax. Businesses may also be required to employ external advisors to oversee the CGS. The resulting adjustments from the calculations can sometimes be relatively smaller when compared to the administration costs incurred by businesses. Therefore, the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial