Tax Journal VAT review for November 2021

This article was first published in the 5 November 2021 edition of Tax Journal who have agreed to Simmons & Simmons making it available online.

This month’s review covers second CJEU VAT decision involving Boehringer, which confirms that the VAT principles applicable to a reduction in consideration extend to monies paid to a third party under a voluntary arrangement. HMRC has also released guidance on the recent Balhousie decision, applying a narrow approach and limiting the application to its particular facts. The Autumn Budget contained little of immediate interest in relation to VAT, but there is the promise of interesting times ahead with consultations in relation to the VAT treatment of investment management and a possible online sales tax. Finally, HMRC has confirmed that full customs declarations and controls will be introduced as planned on 1 January 2022.