The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note deals with the VAT treatment of vouchers with effect from 1 January 2019. See the Coupons and vouchers guidance note for more information on the VAT treatment of vouchers before this date.
For information on other business promotion schemes, see the Coupons and vouchers and Cash backs and loyalty schemes guidance notes.
The EU Commission issued a proposal for Council Directive (COM (2012) 206) on the VAT treatment of vouchers. A copy of the relevant proposal can be accessed via the following link:
HMRC Notice 700/7; De Voil Indirect Tax Service V3.167; VATA 1994, Sch 10A
A press release was also issued by the EU commission regarding the new Directive.
The Commission has also issued the VAT rules on vouchers approved by Council press release.
The new Directive has now been enacted and is according to the Commission intended to reduce the risk of mismatches in national tax rules leading to double taxation, non-taxation or other undesirable consequences. This can happen where a voucher is issued in one EU member state and used in another, and particularly where vouchers are traded. A summary of the changes announced is provided below.
The consultation and amendments to the VAT treatment follow a significant number of cases involving payment using vouchers which have been referred to the CJEU.
A summary of the main changes implemented by the Commission is below.
The term ‘voucher’ means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.