VAT's all folks?

08 March 2016

David Wilson

The ‘triple-lock tax’ clause specifying that rates of VAT won’t rise and that there would be no detrimental decrease in the scope of the VAT zero rate and reduced rate during the term of this Parliament, doesn’t prevent a change to the scope of VAT being made - specifically where it may be applicable following a court or tribunal decision, or in response to infraction by the EU Commission.

With this in mind, there are a number of VAT issues that may be addressed in the Budget. However, as these are generally a result of the EU Principal VAT Directive and EU case law precedent, a ‘political’ Chancellor may not wish to draw attention to EU ‘sovereignty’ with an impending in/out EU referendum.

If you would like to discuss any of these points further, please contact David WIlson or your usual RSM contact.