The UK Budget 2020 – Several highlights
The UK budget 2020 was presented to the Parliament. We have highlighted some VAT related measures below, detailed information can be found on the UK government website.
VAT on e-publications
The UK Government will introduce legislation to apply a zero rate of VAT to e-publications as from December 1, 2020. This measure makes clear that e-books, e-newspapers, e-magazines and academic e-journals are entitled to the same VAT treatment as their physical forms.
VAT Postponed Accounting
From January 1, 2021 postponed accounting for VAT will apply to all imports of goods, including from the EU. This measure was already announced in light of Brexit.
Domestic reverse charge for building and construction services
As already announced the implementation of the VAT domestic reverse charge for building and construction services will be delayed until October 1, 2020
Digital Service Tax
A 2% Digital Service Tax (DST) will be implemented as from April 1, 2020 on the revenues of search engines, social media platforms and online marketplaces which derive value from UK users.
Review UK’s find regime in 2020
This will cover indirect and direct tax. UK government will clarify when fund management services are exempt from VAT (exemption scope will be broader). The new exemption will apply as from April 1, 2020.