The British government promises to revise the VAT policy

Chancellor of the Exchequer of Great Britain, Philip Hammond, confirmed the information that the HM Treasury (an analogue of the Ministry of Finance) plans to revise the policy of working with value added tax. The VAT reform project will cover several areas: the public sector, private enterprises and corporate proposals.

As the Chancellor assures, this project aims to remove unnecessary administrative fees, encouraging the public sector to increase its capabilities. Also, this provision will apply to a number of regions in the UK, where a VAT refund plan will be introduced.

“Within a few months, Her Majesty’s Government will present a plan for dealing with VAT. We believe that these activities will help relieve tension from the public sector, as well as from enterprises and companies that will be able to rely on tax refunds,” Mr Hammond said.

After the UK government evaluates the tax burden, representatives of the executive branch promise to make the report as transparent as possible following the recommendations of the Treasury. It will be composed of expert evaluations and collection of opinions from representatives of public sector companies.

Hammond also noted the Isle of Man, where the government is also going to make a number of changes to work with VAT. After the scandal with the “Panamanian securities”, the Treasury plans to tighten control over companies that provide leasing services. Previously, they tried to evade tax payment, in particular, from VAT, but now an additional measure can be introduced or specifying rules for paying taxable areas of work of any company with registration on the Isle of Man are indicated.

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