UK to adopt mandatory e-invoicing for VAT

Summary of customs and excise measures in Autumn budget.

Is your company CBAM ready?

Independent retailers are urging the Government to crack down on overseas VAT fraud and close the £135 duty-free import loophole — issues now costing the UK up to £700m a year and distorting online competition.

NHS hospitals may be entitled to significant refunds on parking charges. Act now to submit a reclaim.

Post-Brexit VAT: Why the EU Accepts Imperfect Export Proof but the UK Demands Perfection

Since Brexit, UK exporters face far tougher VAT evidential rules than their EU counterparts.

🇬🇧 UK approach:
Zero-rating requires perfect, timely export evidence — usually within 3 months. Missing or late documents? HMRC can deny zero-rating even if the goods definitely left the UK.

🇪🇺 EU approach:
More pragmatic. If customs data clearly shows the goods were exported, some paperwork gaps may be tolerated. Reality over rigid formality.

Result:
UK exporters face higher compliance risk and must operate with stricter controls than businesses in many EU states.

✅ Key takeaway:
If you export from the UK, build strong documentation and audit processes — what passes in the EU may still fail HMRC checks.

Non UK businesses may be able to recover VAT incurred in the UK but will need to act fast not to miss the 31 December claim deadline.

The UK is consulting on mandatory e-invoicing. Businesses should review their systems to be ready for any changes and also to benefit from the savings e-invoicing may entail.

Learn what makes VAT on work clothes recoverable or not.

The costs associated with the production, in the customs territory of the European Union, of printing templates for labels affixed to tins containing foodstuffs imported into the European Union must be added to the relevant transaction value, where the buyer established in the customs territory of the European Union makes the printing templates available free of charge in electronic form to suppliers in a third country.

UK EPR Scheme for Packaging – Modulated Fees from 2026

The UK’s new Extended Producer Responsibility (EPR) regime shifts the cost of packaging waste management to producers, with fees based on recyclability from 2026. Businesses should ensure data and compliance systems are in place ahead of the first charging year.

New EU tariff threat to UK steel.

⚖️VAT grouping - Supreme Court rules on Prudential’s £9.3m VAT dispute ⚖️

The UK Supreme Court has confirmed that Prudential must pay VAT on £9.3 million success fees paid to Silverfleet Capital after it left Prudential’s VAT group.

🔹 HMRC argued the timing of invoicing was decisive — once Silverfleet left the VAT group, the intra-group disregard no longer applied.
🔹 The Court agreed, emphasising that VAT grouping rules must be applied strictly, even if the underlying work was done while Silverfleet was still in the group.

👉 This sets an important precedent for insurers, corporates and private equity firms handling success fees and VAT group restructurings.

#VAT #TaxLaw #SupremeCourt #HMRC #GroupRestructuring #4EyesLtd

In a landmark judgment (R (Hotelbeds UK Ltd) v HMRC [2025] EWHC 2312), the High Court ruled that input VAT can be recovered without a VAT invoice, provided the transactions are genuine and free from fraud.

HMRC had refused claims worth over £10m, insisting invoices were essential. The Court disagreed, stressing that tax neutrality must prevail and that HMRC must consider alternative evidence fairly.

👉 This is a game-changer for businesses struggling to obtain invoices—particularly in travel, hospitality, and cross-border supply chains.

HMRC has updated guidance on correcting VAT errors.

VAT recovery on deal costs is one of the most challenging areas of VAT. The rules are complex, evolving, and heavily scrutinised by HMRC. Errors can result in irrecoverable VAT, higher transaction costs, and potential disputes.

Businesses undertaking acquisitions, restructurings, or disposals must carefully consider VAT treatment. The outcome often depends on:

• The nature of the acquisition, and

• The link between the costs incurred and the business’s taxable economic activities.