OTS Review of VAT and Call for Evidence
Having completed the first phase of their review on the simplification of VAT, the Office of Tax Simplification (OTS) has published an interim report and call for evidence. They have identified the following considerations:
- High registration threshold @ £83,000 which is much higher than other countries that are generally closer to £20,000.
- Multiple rates as a cause of complexity.
- Partial exemption, option to tax and capital goods scheme are all complex.
- Special accounting schemes such as flat rate VAT, retail, tour operators margin, and annual accounting scheme as a source of complexity.
- VAT admin, penalty and appeals processes could be simplified.
- Formal ruling system can delay or prevent many business decisions.
- Making Tax Digital opportunities and risks.
OTS would welcome help in developing their ideas on how to create a sustainable VAT system for the future.
Published on: 07 March 2017 - By: FCSA