Corporate tax update - May 2020

Published on 19 May 2020

Welcome to the latest edition of our corporate tax update, written by members of RPC's tax team.

This month's update reports on the key developments from April 2020. April was not a “bumper” month for corporate tax developments but (as you would expect) there have been some Covid-19 related developments of note. This month's report also includes a summary of the Supreme Court's decision in Zipvit (on input VAT recovery). We hope you, your family and friends are all staying safe

VAT zero-rating of certain e-publications from 1 May 2020
On 29 April 2020, the Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 was made. This order has effect from 1 May 2020 and extends VAT zero-rating treatment to e-publications of books, booklets, brochures, pamphlets, leaflets, newspapers, journals, periodicals, children's picture books and painting books. Read more.
Covid-19 – tax consultations extended by 3 months
On 28 April 2020, it was announced that certain consultations published at the Spring 2020 Budget would be extended by 3 months, in light of the Covid-19 pandemic. The government has confirmed its commitment to the planned reforms, but has offered the extension to allow interested parties to have their say on the proposed tax changes. Read more.
Covid-19 and corporate tax residence
On 7 April 2020, HMRC published updated guidance on both (1) company residence for tax purposes, and (2) risk of creating a UK permanent establishment (PE) in each case in light of the Covid-19 pandemic. Read more.
Zipvit – questions as to input VAT recovery referred to ECJ by Supreme Court
On 1 April 2020, the Supreme Court referred to the ECJ a number of questions as to whether the recipient of postal services may deduct input VAT in respect of those supplies in circumstances where all parties (including HMRC) had incorrectly treated the supplies as VAT-exempt. Read more.
Digital Services Tax – new HMRC guidance on registration, filing and payment
On 1 April 2020, new guidance was published by HMRC on the digital services tax (DST). Read more.

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