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UK VAT splitting update

  • EU VAT
  • 6 July 2017 | Richard Asquith

UK VAT splitting update

The UK’s HMRC has added a new tax avoidance arrangement to its list of prohibited schemes.  Labelled number 38 in HMRC’s list, this concerns attempt to avoid VAT registration and properly charge UK VAT at 20%.

HMRC is targeting splitting of invoices for single transactions.  This includes where multiple suppliers are used for a single supply.  HMRC has indicated that it will review such scenarios to detect if some/all the suppliers are creating the structure to keep their turnover.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.