Indirect tax news from the past week
02/12/2024
Statutory levy on gambling operators announced
The government has announced the introduction of a statutory levy on gambling operators. Publishing its response to the consultation on the levy, which ran from 17 October 2023 to 14 December 2023, the government said that the “levy will be paid by operators and collected and administered by the Gambling Commission under the strategic direction of the Government”. The levy will be charged at a set rate for holders of Gambling Commission operating licences, depending on the sector and nature of the gambling activity. The rate will range from 1.1% (for online operators) to 0.1% of Gross Gambling Yield. Funding from the levy will be allocated as follows: 20% to develop research on gambling to inform future policy and regulation; 30% to develop a comprehensive approach to the prevention of gambling-related harm; and 50% to an NHS-led gambling treatment system. Regulations will be laid before Parliament shortly, and it is intended that the levy will come into force on 6 April 2025. The government has also confirmed that it will implement online slot stake limits of £5 per spin for adults aged 25 years and older, and £2 for 18 to 24 year olds. (Contact: Matt Davies)
Alcoholic products regulations – SI
The Alcoholic Products (Excise Duty) (Amendment) Regulations 2024 (the Regulations) have been made, and will come into force on 1 February 2025. A new alcohol duty system was introduced on 1 August 2023, and the Regulations relate to administrative details, in particular approvals, returns, and payments. The Regulations provide for a single digital approval process, known as the Alcoholic Products Producer Approval, which is expected to be introduced from 1 February 2025. The Regulations also provide for the harmonisation of returns and payments required by producers of alcoholic products. There will be a new digital service for returns and payments which will launch on 1 March 2025: the Manage your Alcohol Duty digital service. Existing guidance on the gov.uk website will be removed and replaced by the new Alcoholic Products Technical Guide, prior to the implementation of the system on 1 February 2025. There were a number of changes to the draft regulations that were published for consultation in February 2024. These included changes to sequencing and correction of some terminology. Other changes included amendments to the information required to be included in an application for approval and to the returns required by producers of spirits. (Contact: Eleanor Caine)
OECD report on consumption tax trends
The OECD has published its report on Consumption Tax Trends 2024. Amongst its findings are that standard VAT rates across OECD countries increased slightly to 19.3% on average (from 19.1% in 2023). All OECD countries with a VAT system have introduced rules that reflect the OECD standards on online sales of services and digital products from non-resident e-commerce vendors and marketplaces. A number of countries have expanded these rules to include imports of low-value goods. Most OECD countries have implemented electronic reporting obligations, although the scope and nature of the obligations can differ significantly between countries. (Contact: Andrew Clarke)
This week’s CJEU VAT calendar
On 5 December, the CJEU will deliver its judgment in Modexel on the carrying forward of input tax credit.
Dbriefs webcast
On 5 December at 12.00, there will be a webcast on E-invoicing – A journey of compliance and transformation. Our Deloitte panel will explore the latest trends, challenges, and opportunities presented by e-invoicing across Europe.