1. E-invoicing implementation roadmap published

The government has published its roadmap for implementing mandatory e-invoicing, setting out how it will prepare businesses for the requirement to issue and receive VAT e-invoices from 1 April 2029.

The roadmap confirms that PEPPOL (Pan-European Public Procurement Online) will form the core interoperability framework in the UK. Further work is planned on standards, business identifiers, exemptions and requirements for software providers.  Key requirements are due to be finalised between October 2027 and April 2028.

The government has also launched a consultation on the future use of e-invoicing digital reporting. This consultation considers whether structured data generated through e-invoicing could in future be reported to HMRC.

No decision has been taken to introduce digital reporting, which would be separate from the e-invoicing mandate. The consultation closes on 20 January 2027.

Further information:

• Economy explainers: e-invoicing

2. Online marketplace liability extended to UK sellers

From 1 October 2027, online marketplaces will be responsible for accounting for VAT on relevant sales made through their platforms by UK VAT-registered businesses.

The rules will also apply to non-VAT-registered UK businesses with annual sales through an individual marketplace of more than £90,000. The threshold applies separately to each marketplace. Second-hand goods and business-to-business sales will be excluded from the rules.

Further information:

• ICAEW’s response to the consultation
• Changes proposed to the VAT rules for online marketplaces
• The government’s summary of consultation responses

3. Reverse charge restricted for services supplied from overseas

From April 2027, the VAT reverse charge for services supplied from overseas will be restricted to UK businesses that are VAT registered. Where the UK business customer is not VAT registered, the overseas supplier will instead be required to charge and account for UK VAT.

The change could have significant implications for overseas businesses supplying services to UK businesses that are not VAT registered.

Further details are needed on how overseas suppliers will account for UK VAT and how the change will interact with the VAT registration rules. In particular, information is needed on the current treatment of overseas services when determining whether a UK business must register.

Legislation will be included in the Finance Bill 2026-27.

4. VAT treatment of private hire vehicle operators

From 2 January 2028, the government will change the VAT treatment of passenger transport services supplied by taxi or private hire vehicle through larger operators.

Where the rules apply, the service will be treated as supplied by the operator rather than the driver. The operator will therefore charge VAT on the full fare.

The measure will apply only where the operator’s annual fare turnover exceeds a specified threshold. The government will consult on the threshold and detailed design, with £50m of annual fare turnover being its lead option.

5. VAT treatment of travel services under review

The government has launched a call for evidence reviewing the VAT treatment of travel services, including the tour operators’ margin scheme (TOMS).

The review considers how TOMS could be changed, simplified or improved. It also examines the VAT treatment of travel services outside the scheme, and services consumed in the UK but supplied by overseas businesses.

The review  asks whether TOMS remains fit for purpose and what the impact would be if it were withdrawn.

The call for evidence closes on 31 January 2027. Please send your feedback to Ed Saltmarsh by 18 December 2026.

Further information:

• Simplifying UK VAT: is the Tour Operators Margin Scheme fit for purpose?

6. Land for social housing to be zero rated

From 1 April 2027, a new VAT zero rate will apply to land sold to registered providers of social housing.

The change will allow registered providers to acquire land before it reaches the “golden brick” stage. Under current arrangements, ownership may be transferred only after construction has progressed sufficiently for an existing VAT zero rate to apply.

The new relief should allow the title to transfer earlier and reduce the need for staged transactions and complex contractual arrangements.

Eligibility will depend on the land being sold to a registered provider rather than its subsequent use. HMRC will publish guidance before the new rules take effect.

Further information:

• The government’s summary of consultation responses

7. VAT cut on domestic energy extended

In July 2026, the government announced that VAT on domestic electricity would be reduced from 5% to 0% from 1 October 2026 to 31 March 2027. An earlier ICAEW article explains the change in more detail.

At thebudget 2026, the government announced that the reduction will be extended to 31 July 2027.

The announcement was made alongside other measures intended to help households with the rising costs of energy, including a commitment to remove standing charges from gas bills.

8. VAT treatment of public and workplace EV charging

The government will legislate to confirm that electricity supplied through publicly accessible and workplace electric vehicle chargepoints is subject to VAT at the standard rate of 20% from 1 November 2026.

The change follows the First-tier Tribunal's judgment in the Charge My Street Ltd case, which found that electricity supplied from public EV chargepoints could qualify for the 5% reduced rate in certain circumstances. HMRC disagreed with the judgment and maintained that public EV charging should be standard rated.

The legislation will also confirm that electricity supplied through public and workplace chargepoints is not treated as domestic use for climate change levy purposes.

9. Payment by direct debit.

From April 2029, the government will require businesses to set up a direct debit instruction for HMRC for VAT payments.

This is explained in a separate article.