HMRC launches VAT consultation

Date: 29th June 2011

Small businesses across the UK could be among those interested in a recent statement made by the government regarding VAT.

HM Revenue & Customs (HMRC) has launched a consultation to see if the VAT cost-sharing exemption, which is operational in Europe, could be used by UK enterprises.

The consultation will also look at possible ways of implementing the rules, should it be decided that the exemption can work in this country.

David Gauke, exchequer secretary to the Treasury, said: "We'd like the views of a wide range of businesses and organisations - particularly those in the education and charity sectors - that have VAT exempt or non-business activities and want to set up cost sharing arrangements.

"This is a complex relief which could have far reaching impacts across a wide range of sectors and careful consideration of the consultation results will be required."

The consultation can be viewed online and would allow certain organisations to gain efficiencies by sharing VAT costs.

Posted by Jacob Williams