At the end of last year we highlighted important changes to the VAT rules on the cross-border supply of digital services (such as digital downloads, e-books or online gaming) to individual customers, and how, without a financial threshold above which the rules would apply, they would create a costly administrative burden for internet start-ups (our … Continue reading VAT in the Digital Single Market: is help on its way for internet start-ups?
The Chancellor today abolished the corporation tax deduction on the amortisation of goodwill that has been acquired as part of a business purchase. This change will have a material impact on the economics of business acquisitions, where the tax deduction on acquired goodwill has been a major driver in businesses being acquired by way of an … Continue reading A lack of goodwill
Why the Diverted Profits Tax is both a mistake and ripe for judicial review Last December the Government announced the introduction of a new tax, called the Diverted Profits Tax (“DPT”), “to counter the use of aggressive tax planning techniques used by multinational enterprises to divert profits from the UK.” Rushed through before the election, … Continue reading An Unnecessary Diversion
The UK Government is keen to be seen as taking the lead in implementing the OECD’s recent recommendations to counteract perceived international tax avoidance. No surprise there given next year’s general election, and it is hybrid structures that are first in the firing line. In brief, hybrid structures seek to take advantages of mismatches between the … Continue reading A wrecking ball for tower structures: major reform of hybrid rules announced
The EU VAT system is set for a significant upheaval come January 2015, potentially causing suppliers of digital products a major headache. The change aligns the rules for both EU and non-EU businesses in relation to the supply of “digital services”, so that VAT is charged on supplies to individual customers in the jurisdiction in … Continue reading Supplies of digital services by EU tech companies