VAT is not undergoing major rate changes, but the direction of travel is clear: greater digitisation and tighter compliance.
Making Tax Digital for VAT is already well established, and HMRC continues to enhance its ability to analyse transactional data. This is increasing the likelihood of enquiries where inconsistencies arise.
There is also growing attention on:
- Platform-based businesses
- Cross-border transactions
- Partial exemption and complex VAT positions
Businesses should ensure systems are robust, records are digital and accurate, and VAT returns are consistent with underlying data.