- The temporary reduced VAT rate of 5% for hospitality, holiday accommodation, and attractions is extended until 30 September 2021, which is followed by the introduction of a new reduced rate of 12.5% from 1 October 2021 that will be in effect until 31 March 2022, after which it will revert to the standard rate;
- Measures for the VAT deferral payment scheme for COVID-19 are legislated for, including for the payment in installments and for penalties when deferred VAT is not paid or there is no agreement to pay;
- Changes are made to enable the extension of the scope of Making Tax Digital for VAT to all VAT registered businesses with effect from 1 April 2022;
- Provisions are introduced in relation to the Protocol on Ireland/ Northern Ireland in the EU withdrawal agreement concerning VAT and distance selling, including provisions for the One Stop Shop and the Import One Stop Shop accounting schemes and other e-commerce VAT changes;
- New provisions are introduced to enable Treasury to make regulations to implement OECD model rules that will require digital platforms to send information about the income of their sellers to both HMRC and to the seller themselves;
- The new Plastic Packaging Tax is introduced from 1 April 2022, which is levied at a rate of GBP 200 per tonne of plastic packaging that contains less than 30% recycled plastic content
- …….
Source Orbitax
