The nation has spoken. We are leaving the EU. VAT is a creature of the EU, defined by regulations, Directives and CJEU rulings. Does it still have a place in the UK? The government and HMRC have yet to address this, but abolition is not expected (it is projected to yield more than £100bn in the current tax year, after all). Nor is wholesale replacement by a domestic goods and services tax. But change is inevitable. This article looks at some of the areas that will be impacted and hazards a sketch of the shape of the changes to come.
The nation has spoken. We are leaving the EU. VAT is a creature of the EU, defined by regulations, Directives and CJEU rulings. Does it still have a place in the UK? The government and HMRC have yet to address this, but abolition is not expected (it is projected to yield more than £100bn in the current tax year, after all). Nor is wholesale replacement by a domestic goods and services tax. But change is inevitable. This article looks at some of the areas that will be impacted and hazards a sketch of the shape of the changes to come.