Also in the news...
Who is subject to financial sanctions in the UK?
A guide to the current consolidated list of asset freeze targets, and a list of persons named in relation to financial and investment restrictions under the Russia regulations
Homes for Ukraine visa sponsorship scheme: privacy notice
Homes for Ukraine visa sponsorship scheme: How we use personal data.
Check duties and customs procedures for exporting goods
Find information about how to move goods from the UK to the rest of the world.
Record-breaking £150bn investment unveiled during US State Visit
Record-breaking investment into the UK of £150 billon unveiled during historic US State Visit, boosting jobs and catapulting growth
US financial giants boost UK investments and jobs across London, Edinburgh, Belfast and Manchester
The Government has announced over £1.25 billion of inward investment from US finance companies, creating 1,800 UK jobs.
EU Reviews Low Value Consignment VAT Loophole
In an effort to minimise VAT evasion, reduce administration and level the playing field for EU traders, the European Commission (EC) wants to abolish the Low Value Consignment Stock Relief (LVCR) scheme.
It’s estimated that the EU is currently losing as much as €500m per annum to non-EU sellers of goods who are able to use the scheme to their advantage, and are suspected of reducing the value of the shipments that they import into EC member states.
The EC has set quite an ambitious deadline of 1 January 2016 to introduce legislation that would see the VAT exemption removed for the importation of small consignments from non-EU suppliers.
The legislation would be welcomed by EU retailers, as it would resolve the issue of unfair advantage from competitors - particularly Chinese businesses.The closing of the LVCR loophole is expected to result in EU customers of overseas sellers being required to pay more, due to the items no longer being VAT free.
As was demonstrated in 2014 when the UK removed the LVCR scheme from businesses registered in the Channel Islands, governments would see a cost benefit (HMRC estimates the loophole was costing the UK £140m annually) and tax authorities would be relieved of having to track and prosecute international sellers.
Need more information? Contact our VAT team.