The UK First Tier Tribunal ruled that payments under VPAG, PPRS and similar schemes are post‑supply price reductions, meaning the VAT originally paid was too high. The Upper Tribunal hearing is set for 9–11 February 2026, with a decision expected shortly after, potentially unlocking up to £2.5 billion in VAT reclaims for pharma and healthcare businesses. Companies can adjust VAT back up to four years by filing protective claims now.
The hearing is scheduled for 9–11 February 2026, with a decision expected shortly after.
It decided that these payments are post‑supply price reductions, so the VAT originally paid was too high and should be adjusted.
Up to £2.5 billion of VAT could be reclaimed.
Businesses can adjust VAT back up to four years.
They should submit protective claims to HMRC now to be ‘stood behind’ the tribunal outcome.
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Crowe UK · about 2 hours ago
Crowe UK outlines five key VAT and tax risks and opportunities for hospice charities, covering corporation tax on non‑primary purpose trading, Gift Aid compliance, fundraising event exemptions, building project VAT relief, and upcoming investment rules effective April 2026. The article highlights practical compliance steps and recent court rulings that may affect hospice operations.
UK GOV · about 17 hours ago
The UK guidance explains the special procedure for outward processing, which allows goods to be temporarily exported from the UK for repair or processing. It outlines the rules, application process, authorisation, and duty calculation for such movements, covering both the UK and EU/Northern Ireland contexts.
UK Government · 7 days ago
HMRC’s guidance explains that intermediaries can register for the Import One‑Stop Shop (IOSS) scheme from 1 April 2026 and must submit a monthly IOSS VAT return on behalf of each client. The return must capture VAT on low‑value imports to EU and Northern Ireland consumers, use ECB exchange rates, and requires nil returns if no sales occur. Intermediaries must also keep 10‑year records and can correct returns within three years.
Law360 · 8 days ago
A London appeals court dismissed a UK telecommunications provider’s bid to recover £51.1 million in VAT payments, agreeing with a lower court that the VAT is owed when the provider supplied services. The decision confirms the provider cannot recover the VAT paid on its telecom services.
Bloomberg Tax · 9 days ago
The Upper Tribunal ruled that Lycamobile UK must pay more than £50 million in VAT, requiring the operator to charge VAT on the full price of prepaid mobile bundles at the point of sale, rather than only on services actually used. The decision, dated 12 Feb 2026, overturns Lycamobile's previous VAT calculation method.
UK Government · 10 days ago
This HMRC internal manual provides guidance on how VAT applies to local authorities and other government and public bodies in the UK. It covers various categories such as non‑business activities, police authorities, NHS capital projects, and local government partnership programmes. The manual serves as a reference for VAT compliance and exemptions for public sector entities.
