VAT Club provides you with regular updates on current hot topics in the world of VAT and other indirect taxes, from Grant Thornton's specialist team. We focus on practical and commercial indirect tax issues, with content regularly driven by feedback from our clients.
The changing world of pensions and VAT
Over recent years, there have been a raft of cases taken to the European Court of Justice challenging the scope of VAT exemption in relation to pension funds. Numerous high profile cases have drawn attention to the area and have resulted in changes to HMRC's policy. Some of these changes have already been made but some will come into effect on 1 January 2016. How has this case law (including that of "Wheels Common Investment Fund" and "PPG Holdings Ltd") contributed to these changes, and what opportunites exist with tripartite agreements?
Watch our video: Drawing on this case law we discuss the ongoing issue of VAT on pension funds and the key implications that you need to consider.
Roadmap to 1 May 2016: Preparation for the new Union Customs Code
Are you a UK business trading internationally and;
- importing and/or exporting?
- paying customs duty?
- storing goods in warehouses ‘under bond’?
- processing raw materials into something else without paying customs duty?
If any of the above applies, you will be affected by the implementation of the new Union Customs Code (UCC), which comes into force on 1 May 2016. The UCC replaces the existing Community Customs Code and one of the main changes is that all customs duties which are potentially due through the operation of a customs duty relief or suspension regime, will need to be secured by a guarantee.
Read our fact sheet: We highlight the changes that the UCC enforces and outline four steps to help you prepare.
VAT exemption and the five key opportunities for not for profit organisations
VAT is generally an additional cost for the majority of not for profit organisation which must be factored into any planned spend. When capital expenditure is involved, devoting up to an additional 20% of charitable funds to a project can be particularly vexing. Consequently, it is advantageous if the imposition of standard rate VAT can be avoided in the first place as opposed to it having to rely on the complexities of a partial exemption/business/non-business method or Capital Goods Scheme adjustments in order to mitigate the VAT cost.
Fortunately, there are a number of specific reliefs from standard rated VAT included in the UK legislation which a not for profit entity may be entitled to utilise when incurring capital expenditure.
Read our article: We explain the five key VAT exemption opportunities available for not for profit firms with regards to capital expenditure.