- The Scottish Parliament’s Finance and Public Administration Committee is unconvinced by VAT assignment plans.
- The evidence session on VAT Assignment featured contributions from various organizations.
- VAT assignment was proposed as part of the Scotland Act 2016.
- Concerns about how VAT receipts would be calculated led to the policy being put on hold in 2019.
- The recent Fiscal Framework Review commits both the Scottish and UK governments to finding a solution for implementing the policy.
- The Chartered Institute of Taxation (CIOT) expressed concerns about the lack of direct control over VAT policy and the risks and complications it could bring.
- The Institute for Fiscal Studies (IFS) described VAT as a poor candidate for devolution or assignment and suggested considering alternative taxes.
- The Fraser of Allander Institute expressed doubts about the feasibility of accurately measuring Scottish VAT receipts and warned of the unreliability of data.
- The Scottish Fiscal Commission and Audit Scotland also raised concerns about data volatility and auditing challenges.
- Cross-party concerns were expressed about the difficulties of implementing VAT assignment and the potential compliance issues.
- Some committee members were skeptical about the benefits outweighing the costs of VAT assignment.
Source: tax.org.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
