Indirect tax news from the past week
2 March 2026
RCB 2 (2026): Aggregates levy devolution
HMRC have published Revenue and Customs Brief 2 (2026) on changes to aggregates levy. From 1 April 2026, Scottish aggregates tax (SAT) will replace aggregates levy in Scotland, and will be administered by Revenue Scotland. The RCB sets out how aggregates levy will change following devolution to Scotland on 1 April 2026. Businesses supplying aggregate between other parts of the UK and Scotland will need to be registered for both aggregates levy and SAT, but there are cross-border relief arrangements in place so that both taxes are not paid on the same quantity of aggregate. The RCB also sets out the evidence needed for cross-border relief, how to complete aggregates levy returns, record-keeping requirements, and guidance for customers and middlemen operating cross-border. It also notes that Revenue Scotland will honour weighing methods agreed with HMRC initially, but may wish to review or change them in the future. (Contact: Zoe Hawes)
Northern Ireland: Intermediary registration for the Import One Stop Shop scheme
The VAT Import One Stop Shop (IOSS) is an optional simplified VAT accounting scheme that can be used to account for VAT on goods valued at £135 or less that are imported into the European Union (EU) and Northern Ireland (NI), and sold to consumers in the EU and/or NI. When the scheme came into effect on 1 July 2021, only businesses from NI (and Norway) could register for the UK IOSS. (EU businesses can register for the IOSS scheme in an EU member state.) From 1 April 2026, businesses from outside NI and the EU will be able to use an intermediary to register for the UK IOSS scheme and act on their behalf. HMRC have published a collection of guidance for businesses wishing to register as an intermediary. HMRC have also updated their collection of guidance on the IOSS scheme to reflect that intermediary registrations will be available. (Contact: Jason Craig)
Gambling duty changes
HMRC’s most recent Agent Update included a reminder of upcoming gambling duty changes. The rate of remote gaming duty will increase from 21% to 40% from 1 April 2026. Where an accounting period spans this date, the increased rate will apply to profits that arise between 1 April and the end of the accounting period. Bingo duty will be abolished on 1 April 2026. And from 1 April 2027, a new remote betting rate of 25% will be introduced within general betting duty, excluding remote bets on UK horse-racing, which will remain subject to a 15% rate. HMRC have said that their guidance will be updated from April 2026. (Contact: Brad Kyne)
This week’s VAT case calendar
On 5 March, the Upper Tribunal is due to hear the taxpayers’ appeal against the First-tier Tribunal decision in Barclays Service Corporation & Anor on VAT grouping.
At the CJEU, on 5 March, there will be judgments in the joined cases of J-GmbH, Blapp and D GmbH on the application of the VAT reduced rate for accommodation to supplies of ancillary services such as parking spaces and breakfast, Lyko Operations AB on VAT and loyalty schemes, and Žaidimų valiuta on the VAT treatment of sales of in-game currency.