The UK’s HMRC announced several VAT developments in July 2026, including changes to the Capital Goods Scheme, digitisation of option to tax, a consultation on development land for social housing, and the adoption of Peppol for e-invoicing. From 29 July 2026, the CGS threshold for land, buildings and civil engineering works rises to £600,000 and computers are removed from the scheme, while a new online portal for option to tax will launch before year end.
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HM Revenue & Customs · about 20 hours ago
The UK government brief clarifies that supplies of GMC registered locum doctors are exempt from VAT under Item 5, Group 7, Schedule 9 of the VAT Act 1994. It also provides guidance on claiming refunds for overdeclared output tax on supplies made within the last four years, and outlines the error correction notification process.
iCustoms · 1 day ago
The UK and EU customs clearance for animal products requires both SPS health checks and customs declarations to be reconciled. This guide explains the dual-track process, key notification steps, and a pre-clearance checklist to avoid delays.
AVASK · 2 days ago
The UK requires VAT registration once taxable turnover exceeds £90,000 in any rolling 12-month period. This guide explains the threshold, registration deadlines, and penalties.
UK Government · 4 days ago
United Kingdom: The new VAT provisions for drink Deposit Return Schemes will change how VAT is accounted for deposits, shifting liability to scheme administrators. The changes will take effect when the schemes commence in Autumn 2027, following the Finance Bill 2026-27 and associated regulations.
1stopVAT · 8 days ago
UK: HMRC is consulting on expanding deemed supplier rules for online marketplaces to include UK-based vendors, aiming to curb VAT fraud. The consultation will run until 18 August 2026, and stakeholders are invited to submit views.
1StopVAT · 9 days ago
UK: The First-tier Tribunal ruled that HBS Enterprises Ltd, a UK-established business, remains liable for VAT on marketplace sales, despite HMRC’s misclassification as a non-established taxable person. The ruling confirms that the deemed supplier provision does not apply when the vendor is established in the UK, and that double taxation is avoided.
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Key Takeaways
From 29 July 2026, the UK’s Capital Goods Scheme threshold for land, buildings and civil engineering works rises to £600,000 (exclusive of VAT) for all VAT-registered businesses.
Capital expenditure incurred before 29 July 2026 will continue to be assessed against the existing £250,000 threshold under the UK’s Capital Goods Scheme.
Before the end of 2026, HMRC will launch an online portal for option to tax matters, allowing businesses to submit election notifications, revocation notifications and option to tax information digitally.
From 1 January 2029, the UK’s e-invoicing mandate will use Peppol as the core interoperability network, requiring all VAT-registered businesses to route electronic invoices through Peppol.
HMRC is consulting on a targeted zero rate for the sale of land to registered social housing providers at an earlier stage, aiming to simplify arrangements and support social housing delivery.
Primary source
Read the full article at SafferyThis summary was published on VATfaqs.com on 18 July 2026. It relates to VAT developments in United Kingdom. The original source is Saffery.
