The VAT briefing for April 2018

This month’s developments highlight the limits on the UK’s ability to determine its own VAT policy within the EU. The alleged ultra vires extension of zero-rating under the Terminal Markets Order (TMO) the inability to extend zero-rating to e-newspapers pursuant to an ancient derogation and the restrictions on what action the UK might take in relation to VAT registration thresholds all emphasise the way in which the VAT system is subject to the EU wide set of rules with which member states must comply. The extent to which Brexit may provide opportunities to lift some of these restrictions and enable a UK government to implement its own VAT rules based on social and fiscal policy considerations is therefore an intriguing one. That said the prospect...