Draft legislation: Amendment of the VAT (Input Tax) (Specified Supplies) Order 1999
Consultation on draft amendment to Specified Supplies Order to address the issue of VAT off-shore looping in the financial services sector.
Documents
Details
Detail of outcome
The technical consultation on the draft amendment to the Specified Supplies Order closed on 28 September 2018. HMRC received 5 responses from professional bodies and businesses. We would like to thank those who contributed.
An update was given on this measure at the Budget on 29 October 2018. In response to the representations received the measure has been more tightly targeted on the known avoidance and now applies to insurance intermediary services only and only when the primary supply of insurance is made to UK customers. The revised legislation will be laid in December and implemented from 1 March 2019.
You can read more about the changes to the VAT specified supplies anti-avoidance in the tax information and impact note.
Detail of original consultation
On 19 July 2018 the government announced, through a Written Ministerial Statement to Parliament, that it will legislate to deal with a particular version of VAT avoidance that involved ‘looping’ financial services through non-VAT territories.
A draft statutory instrument to amend the Specified Supplies Order was published, along with a draft explanatory memorandum. The period for comments or queries on the draft instrument and memorandum ended on 28 September 2018.
Last updated 8 November 2018 + show all updates
-
Response to consultation has been published.
-
First published.