UK Legislates To Adopt New EU VAT Rules For Vouchers – TaxBack

from the blog.

UK Legislates To Adopt New EU VAT Rules For Vouchers

Many professionals that migrate to the UK to study, work or do both are unaware of the country’s tax legislations.

You may not need to be thorough with the UK tax policies, however, it will be beneficial to know the details for areas such as PAYE. In July 2018, the UK government issued a draft legislation that would transfer the EU’s VAT (Value Added Tax) rules on vouchers to the UK law. With this in effect, the UK regulations on the VAT component needs to be reassessed.

This new legislation is for both physical and electronic vouchers that have already been paid to buy goods or services for which the voucher is accepted. The legislation does not apply to discount vouchers, post stamps, transportation tickets, cinema tickets and reduction vouchers. According to this legislation, UK businesses need to include the VAT on vouchers submitted from 1st January 2019.

The VAT is added for both SPVs (single purpose vouchers) and MPVs (multiple purpose vouchers) in different areas of the supply chain. For SPVs the VAT will be incurred at the point of sale and thereafter on every occasion the vouchers are sold and purchased in the supply chain. In the case of MPVs, there will be no VAT at the time of point of sale. It is only at the final sale of the product or services to the end use that the supplier will declare the VAT.

According to the UK Government, the provisions will enable the rules for the tax vouchers to be specifically where they can be used in the UK or EU. The purpose of this legislation is to avoid double taxing and non-taxation of goods and services purchased via vouchers. The legislation only affects on the above mentioned voucher types.

Enjoyed this article about UK Legislates To Adopt New EU VAT Rules For Vouchers? Click here to get to know about UK Tax Returns and claim PAYE Tax Rebates Online.

Related Posts

Making UK Tax Digital – UK VAT Submission Changes from 1 April 2019

Her Majesty’s Revenue and Customs (HMRC) has issued formal guidelines on the changes to the UK VAT return submissions which would come into effect next year. VAT return submissions would be the first to see these changes under the Making...

Top 04 Tips for Filing a Self-Assessment Tax for the UK

Your self-assessment tax for the UK is a serious task which needs to be done accurately and timely; if you are a self-employed professional who between the period of April 6 th 2017 and April 5 th 2018 earned over...

Common UK Tax Return Mistakes

Listed are common UK tax return mistakes and the solution to avoiding them. After all, a small mistake filling out that HMRC document can result in you incurring huge losses, so let’s get cracking and avoid those expensive mistakes. What...

Leave a Reply

Your e-mail address will not be published. Required fields are marked *