The Deloitte TaxScape weekly VAT news update covers a First‑tier Tribunal ruling that allows Littlewoods to recover full input tax on photography costs, the withdrawal of HMRC’s linked‑goods concession under the ESC, and significant changes to the EU Deforestation Regulation effective 30 December 2026 for large and medium businesses. It also notes the removal of printed materials from the EUDR scope and the publication of these changes in the Official Journal on 23 December 2025.
The FTT upheld Littlewoods’ appeal, allowing full input tax recovery on photography costs, attributing them solely to taxable retail supplies.
The changes postpone application to 30 December 2026 for large and medium businesses.
HMRC has withdrawn the ESC; supplies previously eligible will be treated under the standard legislation, with no new compliance obligations.
They were published on 23 December 2025.
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GOV.UK · 6 days ago
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