VAT key measures included in Budget 2021 are as follows.

Registration threshold

Reduced rate of VAT: hospitality, accommodation and attractions

Deferred VAT payment scheme 

Powers to tackle Electronic Sales Suppression (ESS) 

Previously announced measures

Reversal of the removal of Second Hand Margin Scheme for cars 

Repeal the VAT Treatment of Transactions Order 1992

Making Tax Digital

Useful guides on this topic

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

COVID-19: VAT deferred payments
COVID-19 VAT payment deferral measures for VAT registered businesses.

Making VAT Digital
Making Tax Digital for VAT, or Making VAT Digital (MVD). This section sets out who needs to follow the MVD rules, what software to use, what records to keep, and what agents need to do.

Margin Scheme
Rather than calculating output VAT on the sales price in the usual way, businesses calculate their VAT liability on the profit margin they make on the goods they sell.

Registering for VAT
A guide to explain when to register for and charge VAT? VAT registration limits and VAT rules after Brexit. What penalties might HMRC issue for late notification of registration? 

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