Becky Hayes (Indirect Tax Manager) at PKF Francis Clark has put together some of the key VAT outcomes from the budget:
- From the 1 December 2020, VAT on all downloadable publications including books, newspapers, magazines and journals will attract the zero rate of VAT, the same VAT treatment as their physical counterparts.
- ‘Tampon Tax’ to be abolished from 1 January 2021. This sees the end of the 5% VAT rate applied to sanitary products currently. Whist in the EU, the Government was unable to reduce the VAT rate.
- Postponed VAT accounting will apply to all imports of goods from 1 January 2021, including goods imported from the EU. This means that importers will be able to declare and recover import VAT in their VAT returns rather than when their goods arrive at the UK border.