CIOT respond to Treasury Committee VAT Inquiry

Released 12 June 2018

The Chartered Institute of Taxation (CIOT) has published its response to the Treasury Committee VAT inquiry.

The Treasury Committee invited written submissions on various aspects of VAT including: VAT and the tax gap, VAT and Brexit, and VAT and business. The CIOT response comments that to significantly cut the VAT tax gap HMRC will need to invest in the VAT system and potentially increase staff numbers in an environment that has seen a reduction in both offices and staff numbers together with a move away from face to face meetings with taxpayers. The CIOT also considers that HMRC need to provide better guidance and taxpayer support to reduce errors and assist taxpayers to pay the correct tax at the correct time. VAT is a self-assessed tax, yet the CIOT receive continued reports of inadequate/inaccurate/out of date guidance. This, coupled with the difficulties in getting rulings from HMRC, makes it difficult for many businesses to comply with their VAT obligations. The availability of guidance and rulings needs to be improved.

View the submission at Treasury Committee VAT Inquiry - CIOT response.

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