Indirect tax news from the past week
1 June 2026
Taxation of ecosystem services
HMRC have published Technical note on ecosystem services, setting out their views on the tax treatment of various payments made to landowners under contracts for the provision of ecological benefits, referred to as ‘ecosystem services’. The note covers statutory ecosystem services (biodiversity net gain (BNG) and nutrient neutrality) and government-backed voluntary schemes (the Woodland Carbon Code and the Peatland Code). It also sets out the general principles that HMRC will apply when considering the tax treatment of other similar non-statutory arrangements. VAT-specific references cover the VAT treatment of BNG units/credits and carbon credits, setting out the circumstances in which HMRC consider the instruments/credits to be subject to VAT or outside the scope. (Contact: Andrew Clarke)
Single trade window – consultation
The Institute of Chartered Accountants in England and Wales (ICAEW) has reported that HMRC are asking stakeholders to complete a survey on the single trade window. The single trade window would be a single digital gateway for traders and intermediaries to meet their border obligations, bringing together border services and other features, such as applications for licences and authorisations. In November 2024, the government announced a pause in the development of the single trade window. According to the ICAEW, HMRC continued to develop the policy, and are now re-engaging with industry to test whether the requirements identified in earlier rounds of stakeholder engagement still hold. HMRC are asking stakeholders to complete the survey to help shape the next phase of design, with particular focus on issues with current border systems, stakeholders' biggest challengers, and how to take account of the European Union's proposed customs data hub. The survey will close on 3 June 2026. (Contact: Sam Kiely)
Advance tax certainty service – open for expressions of interest
The advance tax certainty service is intended to provide major investment projects with certainty in advance as to how tax, including VAT, would apply. The service will be available for projects with qualifying UK expenditure of at least £1 billion. HMRC’s guidance page confirms that the service will launch on 1 July 2026, with expressions of interest accepted from 1 June 2026 via email to advancetaxcertainty@hmrc.gov.uk or the business’s customer compliance manager (CCM). Following the expression of interest, an early engagement meeting with HMRC will be scheduled before a clearance is formally submitted in writing. (Contact: Donna Huggard)
European Union: VAT in the Digital Age implementation – work programme
The European Commission has published a VAT in the Digital Age (ViDA) 2026 work programme, covering planned implementation activities. The ViDA package includes three pillars: digital reporting requirements, the platform economy, and single VAT registration. The package will be phased in through to January 2035. Building on the ViDA implementation strategy published in September 2025, the work programme outlines the main implementation activities planned for 2026 and early 2027. The activities cover legislation, IT implementation, technical support, the preparation of guidance, and consultations.
This week’s CJEU VAT case calendar
On 3 June, there will be a judgment in G Kft. in a reference from Hungary on a VAT refund claim for a period that had been closed following a VAT inspection.