The standard rate of VAT will be decreased from 23% to 21% for the period 1 September 2020 to 28 February 2021.
The standard rate applies to some 53% of activity, including the supply of cars, petrol, diesel, alcohol, tobacco, electrical equipment and adult clothes and footwear.
The businesses have been referred to HMRC’s Tax Evasion Referral teams, which investigate cases to determine whether a civil investigation should be launched
As you may have seen, on 13 July 2020, the UK Government published the Border Operating Model which provides guidance on how the customs border for trade between the EU and Great Britain will work following the end of the Brexit transition period of 31 December 2020
The Prime Minister (PM) launched a platform for “Transparent Taxation – Honouring the Honest.” The tax system aims at being Seamless, Painless and Faceless with three pillars under consideration: (a) Faceless Assessment, (b) Faceless Appeals, and (c) Taxpayers’ charter, with faceless assessment and taxpayers’ charter coming into force from 13 August 2020, and faceless appeals to be available from 25 September 2020.
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Α. Provision of tax incentives for the implementation of e-invoicing
In the draft bill entitled “Microfinance framework, regulations for the financial sector and other provisions”, it is envisaged that a series of incentives will be provided to entities that choose e-invoicing through the use of electronic data providers, as an exclusive way of issuing their sales documents (issuers), as well as to entities – recipients of goods or services that accept e-invoicing through any provider (recipients), for tax years up to 2022.
To promote the “Make in India” initiative and as part of the ease of doing business measures, the Central Board of Indirect Taxes and Customs (CBIC), had notified the Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 (Scheme). This Scheme enabled businesses to import raw materials and capital goods without payment of duty for manufacturing and other operations in a bonded manufacturing facility for exports, while allowing import duty deferral for the domestic market.
Recently, the National Anti-Profiteering Authority (NAA) held a multiplex owner guilty of profiteering under section 171 of the Central Goods and Service Tax Act, 2017 (CGST Act). The NAA has upheld the allegations of the Directorate General of Anti-profiteering (DGAP) that post reduction in the rate of GST from 28% to 18%, the taxpayer had increased the base price while maintaining the same selling price for the services rendered.
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As you will be aware, the UK Government’s VAT Deferral scheme has now ceased. This means that all payments in respect of UK VAT from 01 July 2020 will be required to be made by the relevant date.
With the continuing uncertainty over the possibility of an extension to the Brexit transition period beyond 31 December 2020, PwC UK is hosting a global webcast on Thursday 9 July 2020 at 3pm-4pm CET.
The Ministry of Law and Justice issued the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (Ordinance) to introduce relief measures like extension of time limit for filing appeals, passing of order, issuance of notice etc considering the COVID-19 pandemic.
PwC Switzerland ITX
Michaela Merz 