Weekly VAT News

HMRC guidance updates

HMRC have recently made changes to some of their guidance. VAT on goods exported from the UK (VAT Notice 703) was substantively amended in February and March, including updates to the evidential requirements for zero-rating and to customs terminology and processes, some of which have force of law. Domestic reverse charge procedure (VAT Notice 735) was amended to include a new section 3.5.4 on electric vehicle charging, which sets out that the reverse charge for electricity does not apply to the supply of electricity at a charging point for electric vehicles. A number of handbooks have been added to the Customs Technical Handbooks collection, which updates and consolidates HMRC’s detailed customs guidance. Recent additions include handbooks on customs supervised export, designated export place, the goods vehicle movement service, and UK continental shelf movements. (Contact: Andrew Clarke)

Business systems integration – call for evidence

HMRC have published Call for Evidence: Business Systems Integration, seeking input on how small and medium-sized businesses use digital systems to keep records, in particular, integrations enabling the automatic transfer of sales and purchase data into accounting software. The integrations in scope are those operating within a business’ own systems, not the sharing of data with HMRC. HMRC are looking to identify practical steps for government and industry to make integrations more useful for businesses. It is not intended that any requirements for integration would be introduced as a result of the call for evidence. The call for evidence is part of a wider “government effort to boost economic growth and productivity, help businesses manage cashflow and reduce errors in tax returns”. Accordingly, it is informed by other initiatives including the mandating of electronic invoicing for VAT invoices by 2029. The call for evidence closes on 4 June 2026. (Contact: Donna Huggard)

Climate Change Levy: electrolytic hydrogen – SI

Following an announcement at the Spring Statement 2025 and subsequent consultation, the Climate Change Levy (Fuel Use and Recycling Processes) (Amendment) Regulations 2026 have been made to exempt from Climate Change Levy (CCL) electricity used in electrolysis to produce hydrogen. The regulations also exempt from CCL natural gas used partly as fuel and partly as a source of carbon dioxide to produce sodium bicarbonate from soda ash. The regulations came into force on 12 March 2026. (Contact: Zoe Hawes)

Corporate criminal offences statistics – HMRC update

HMRC have updated their statistics on investigations of corporate criminal offences (CCO) for the failure to prevent the facilitation of tax evasion. As at 31 December 2025, HMRC had secured one charging decision, with an additional 11 live CCO investigations. A further 32 identified cases were under review as to whether they should proceed to an investigation. The cases identified span 10 business sectors. To date, HMRC have reviewed and rejected an additional 126 cases. However, HMRC note that some of these previous investigations have led to satisfactory explanations that have caused CCO investigations to be dropped, but have instead led to other potential tax and regulatory offences being pursued. (Contact: Adam Routledge)

This week’s CJEU VAT case calendar

On 25 March, there will be a judgment in TUI Belgium on travel services and the application of the standstill clause.

Deloitte VAT School 2026

Deloitte VAT School is a comprehensive VAT training programme that provides participants with practical VAT knowledge and helps them become more effective in their role. Taking place in Deloitte’s London office, the course comprises three modules held monthly from April through to June. Deloitte VAT School is suitable for a range of attendees, from FDs looking for a better understanding of the intricacies of the VAT system, to AP/AR staff to aid their day-to-day responsibilities. The price is £2,950, plus VAT, for sessions 1 to 3, with a 15% discount for bookings of three or more places from the same organisation. For more information and to register, please visit Deloitte VAT School 2026.