Read Talking Points to keep up to date on recent Indirect Tax developments.
Talking Points is a weekly newsletter covering recent developments in Indirect Tax. We will highlight the most significant items in Tax Matters Digest so readers are aware of issues that may be relevant and can read on for more details where applicable. In our latest edition we looked at “Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments” and new HMRC guidance. There have also been a number of announcements on changes from 1 January 2021 when the Brexit transition period ends.
10 September 2020 | Issue 30/20
This week’s edition reports on “Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments” and new HMRC guidance. The new guidance confirms that HMRC will generally treat early termination fees, liquidated damages and damages for breach of contract as consideration for a supply and thus subject to VAT. Compensation will also generally be seen by HMRC as consideration for a supply, unless there is no direct link between the payment and a supply of goods or services.
In other recent news there have been a number of announcements on changes from 1 January 2021 as a result of the Brexit transition period ending.
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