As announced at the 2019 Spring Statement, HMRC has issued a call for evidence until 26 September 2019 on options for improving the operation of VAT partial exemption and the capital goods scheme (CGS), following recommendations made by the OTS in its 2017 VAT review (see bit.ly/2YdyKjI). Proposals include:
allowing businesses to apply partial exemption special methods without seeking approval from HMRC, with increased focus on the use of sectoral frameworks;
reforming the partial exemption de minimis test by either increasing the input tax threshold, or removing the de minimis limit entirely so as to disallow all input tax relating to exempt supplies; and
simplifying the CGS by raising the current threshold for land and property, removing computers from the scheme, and changing the duration of CGS calculation intervals for immovable property.
As announced at the 2019 Spring Statement, HMRC has issued a call for evidence until 26 September 2019 on options for improving the operation of VAT partial exemption and the capital goods scheme (CGS), following recommendations made by the OTS in its 2017 VAT review (see bit.ly/2YdyKjI). Proposals include:
allowing businesses to apply partial exemption special methods without seeking approval from HMRC, with increased focus on the use of sectoral frameworks;
reforming the partial exemption de minimis test by either increasing the input tax threshold, or removing the de minimis limit entirely so as to disallow all input tax relating to exempt supplies; and
simplifying the CGS by raising the current threshold for land and property, removing computers from the scheme, and changing the duration of CGS calculation intervals for immovable property.
