Morrisons has lost a VAT court case, resulting in a £17 million tax bill. The ruling confirms the supermarket’s liability for unpaid VAT and underscores the importance of strict compliance for retailers. The decision may serve as a precedent for future VAT disputes in the UK.
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1stopVAT · 2 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 · 3 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.
RTCSuite · 4 days ago
The UK will require all VAT invoices to be issued in a specified electronic format from 1 April 2029, covering B2B and B2G transactions. Peppol will serve as the core interoperability network, and NHS England already mandates PEPPOL-compliant invoicing for its suppliers.
UK Government · 4 days ago
The UK HMRC announces simplification of the Capital Goods Scheme effective 29 July 2026. Computers and computer equipment will be excluded and the expenditure threshold for land, buildings and civil engineering work rises to £600,000.
Law360 · 5 days ago
The UK Upper Tribunal ruled that dental aligners are not exempt from VAT under the dental prostheses provision. The decision reverses a lower tribunal ruling and means dental practices must charge VAT on aligners.
Law360 · 6 days ago
UK: The London appeals court has ruled that alternative education providers can claim a VAT exemption for their services. The decision overturns HMRC's earlier denial and may affect VAT treatment for educational institutions.
Primary source
This summary was published on VATfaqs.com on 7 January 2026. It relates to VAT developments in United Kingdom. The original source is International Tax Review.
