by Alistair Duncan, Indirect Tax Partner at AAB

The e-commerce landscape has evolved significantly over recent years, revolutionising the retail sector by enabling businesses to reach global markets. However, the rise of digital services and online shopping, both B2B and B2C, has generated some complex tax implications, in particular relating to Value Added Tax (VAT).

VAT—a consumption tax—is generally applied based on where goods and services are consumed. However, in the case of e-commerce, the challenge arises when businesses must navigate cross-border sales, and the goods or services are consumed in different tax jurisdictions.

Prior to the UK’s exit from the EU, UK businesses applied UK VAT on distance sales to other member states.  Only when the threshold for a particular member state was breached was registration necessary and local VAT due.   However, following 1 July 2021 this is no longer the case.  Rather than individual thresholds, a single €10,000 applies to all sales to consumers within the EU.  As soon as this much reduced threshold is breached, there is a requirement to register and account for the VAT in the EU. These new rules for e-commerce are intended to ensure the system is more aligned with the concept of VAT as a consumption tax.

The One Stop Shop (OSS)

The introduction of One Stop Shop (OSS) VAT registrations is designed to alleviate this bureaucratic burden for smaller traders. In essence, if a business sells goods or services from the UK to several different countries in the EU, then they are only required to register with one of the jurisdictions, and generally speaking, it will be prudent to register with one that speaks English.

So how does it work in practice? Traders submit a single document or return to that single jurisdiction, which lists the sales completed across all the other jurisdictions, and then the EU takes responsibility for passing that money around.

It’s important to note that the OSS only applies to goods with a shipment value of €150 or less.

It is really designed for someone selling small items through an online marketplace such as Amazon or Ebay. What’s more, there are different One Stop Shops for goods and for services, so businesses may need to register for both.

Of course, the OSS only applies to countries within the EU, so for example other jurisdictions outwith that, such as Norway, will still be required to be registered in multiple jurisdictions.

B2C vs B2B

There is an added complication in whether the transactions are categorised as B2C or B2B.

B2B suppliers have always had to adhere to a different VAT rule, namely that the responsibility for accounting for the VAT generally rested with the recipient, i.e. the customer, whereas with B2C it remains the supplier’s responsibility.

Online marketplaces

Specific rules apply for online marketplaces, whereby the responsibility for accounting for the VAT passes to the online marketplace. For example, businesses selling goods through Amazon to UK consumers wouldn’t need to register in the UK, as it is Amazon’s responsibility to account for the VAT. What this means for HMRC, is that they can concentrate their efforts on the online marketplace retailer, rather than trying to liaise with companies across the globe, who may have limited visibility.

Digital services

Generally speaking, in relation to B2C suppliers, the place of supply is where the supplier is based, but there are certain services which have a ‘use and enjoyment’ provision, which means that the place of supply then shifts to where those services are actually physically used and enjoyed. So if you’re a UK business supplying digital services to non-UK consumers, you will be liable for a registration requirement in multiple jurisdictions.

Pricing challenges

Different jurisdictions apply different VAT rates, and that presents a challenge for EU businesses in pricing their goods and services competitively. Do they set different prices for different jurisdictions? Or present a VAT-exclusive price on their websites, and then add the VAT at point of sale? Each of these options present their own advantages and disadvantages, but it’s vital that suppliers know the location of consumption of these products and services, particularly in the realm of digital services, where VPNs may be used to disguise the users’ real location.

Knowledge is power

These rules present a potential minefield for businesses, but there are several straightforward steps that can carve out a safe path forward. So which questions should e-commerce businesses address as part of their compliance planning?

Are you dealing with goods or services? Different supply rules apply to each of these.

What is the nature of that service? Does it fall within the digital services rules?

Consider the value point of goods. Does this fall within the remit of the One Stop Shop?

What are the implications of varying VAT rates across jurisdictions for your pricing strategy? Depending on which strategy you pursue, all your terms and conditions must cover these off, leaving no room for misinterpretation.

Which jurisdictions are you trading with? Different rules will apply, and it’s critical to understand and comply with those requirements in each respective jurisdiction.

If it’s a service, does this fall within the ‘use and enjoyment’ classification? If so, how do you identify where your customers are located?

In an increasingly interconnected global marketplace, addressing these questions will empower businesses to put processes in place to allow them to meet the compliance obligations for the various jurisdictions in which they do business.

www.aab.uk/services/tax

With the need for culture organisations to diversify and expand their skills more acute than ever, Culture & Business Scotland have unveiled a series of training opportunities and events designed to help the nation’s creative professionals equip themselves with new knowledge.

The charity, which works to facilitate mutually beneficial connections between the culture and business sectors, will host a series of upcoming events giving organisations well-rounded education in a range of subjects including fundraising through storytelling, legacy giving and the principles of board membership.

Next week, a short course on board membership taking place on Tuesday 4th June will give new trustees and board members access to two informative, hands-on sessions introducing them to their new roles and responsibilities.

On Tuesday 4th and Tuesday 11th June two sessions will explore the five stages of the copywriting process, while additional training courses will help participants to deeper their understanding of corporate sponsorship and discover the benefits and possibilities of legacy giving campaigns.

Along with full-length courses, Culture & Business Scotland run a series of Insights Webinars designed to empower individuals and organisations in the culture sector with knowledge and expertise from industry experts, and networking events, allowing attendees the chance to connect and collaborate with like-minded professionals in the culture sector.

David Watt, Chief Executive of Culture & Business Scotland said: ‘Our programme of events is designed to help both members and non-members to expand their skillsets and knowledge and empower them to feel confident in all aspects of their work. Thanks to expert guidance and structured, practical sessions, participants will gain a solid foundation in skills that are crucial in the evolving landscape of Scotland’s culture environment’.

Individuals and organisations interested in attending an event can find further information here: https://www.cultureandbusiness.scot/training-events/

It’s World Oceans Week (3 – 10 June) with World Oceans Day being celebrated on Saturday (8^th June).  All week, Dynamic Earth in Edinburgh, Edinburgh’s Science Centre and Planetarium and the UK’s leading earth science engagement charity is taking visitors on an exciting deep dive under the waves to learn more about the marine life and importance of our oceans.

A special feature of World Oceans Week is the chance to enjoy the Sounds of the Ocean show (2pm daily, ages 12+) within the planetarium. Listen to the captivating sounds of ocean life, including dolphins and whales communicating to the backdrop of instrumental music.

The expert planetarium team at Dynamic Earth will also host a daily, presenter-led, ocean themed ‘Under Pressure’ show (1pm, ages 6+). This takes a deep dive into the oceans, revealing how scientists and engineers are helping us to discover more of the hidden marine life and ecosystems far below the surface.

The theme on World Oceans Day (8th June) is ‘Waves for Change: Collective Actions for the Oceans’. At Dynamic Earth, visitors will be able to experience the ocean themed planetarium shows, have the chance to try the FREE Ocean Investigators (ages 6-12+) drop-in sessions (including creating a glow in the dark jellyfish or funky fish hat) and explore the depths of the sea. The Discover the Deep ocean gallery will reveal the incredible habitats and creatures of the deep.

Scotland is inextricably linked with the sea.  Off and around our 6,000-mile coastline live thousands of amazing marine species, including bottlenose dolphin, orca and one of the world’s largest colonies of grey seals. Dive deeper and there are cold-water coral reefs to explore.

Alex McCombie, the Learning and Engagement Officer at Dynamic Earth, explained why World Oceans Week is so significant: “The ocean is the largest living space on Earth and our life support system, but only a tiny proportion of the deep has been explored. World Oceans Day and the activity we’re delivering throughout this week are brilliant opportunities for visitors of all ages to discover more and be curious about Earth’s underwater worlds, including our ocean planetarium experiences, Discover the Deep ocean galleries, and drop-in activities”

Homebuilder’s team in Edinburgh supports Alzheimer Scotland with fitness challenge

Miller Homes Scotland East is supporting Alzheimer Scotland with a donation of £10,595 following recent fundraising efforts that saw the homebuilder’s Edinburgh team complete a month-long step count challenge, alongside other colleagues in the East of Scotland.

For each mile a Scotland East employee stepped during the challenge, Miller Homes pledged to donate £1 to Alzheimer Scotland, resulting in thousands raised for Scotland’s dementia charity.

Making a real difference to the lives of people living in and around the communities Miller Homes is building in, this challenge allowed employees in Edinburgh to stay fit through a variety of exercise methods, from hill walking and running, to taking part in basketball, netball and football games.

Neil Gaffney, Sales Director for Miller Homes Scotland East, is exceptionally proud of the fundraising efforts from the Edinburgh team. He said: “The team members from our head office and West Craigs Manor development in Edinburgh certainly know how to accept a challenge and this charity fundraiser was no different. Each employee took this incentive in their stride, quite literally, raising a staggering total for Alzheimer Scotland, a charity we know is close to so many of our employees’ hearts.

“Not only have we been able to provide a cash boost for a great cause, we’ve also been able to encourage our employees in Edinburgh to come together through exercise and improve their overall health and wellbeing.”

Tom Pavey, Fundraising and Engagement Coordinator for Alzheimer Scotland said: “We are delighted to receive this very generous donation from Miller Homes, the support from its employees throughout this partnership has been extraordinary. Alzheimer Scotland depends on fundraising and every penny raised will help us to continue to fund our vital network of Dementia Advisors, Dementia Centres and 24-hour Freephone Dementia Helpline, that all provide critical support for people living with dementia and those who care for them. This donation from Miller Homes helps us to Prevent Today, Care Now and Cure Tomorrow.”

For more information on Alzheimer Scotland, visit www.alzscot.org/.

To find out more about Miller Homes’ community work, visit www.millerhomes.co.uk.

Lothian has crowned a new Driver of the Year following its annual Bus Driver of the Year final at the Royal Highland Centre in Ingliston on Tuesday 28 May.

17 finalists from across the Lothian Group competed on the day, excelling in three specially designed challenges – a theory test, a practical road driving test and an obstacle course.

Thomas Gilhooley of East Coast Buses took first place overall, with Gary Black and John O’Hara, of Lothian’s Airlink and Longstone teams respectively, making up the podium.

Lothian will now send representatives to the UK Bus Driver of the Year Final in Blackpool later in the year, hoping to go one better than last year’s incredible result, when two of the award-winning operator’s’ drivers finished in the top three.

Willie Hamilton, Operations Director for Lothian said: “Our drivers do an incredible job day in, day out delivering for the 2 million customers who choose to travel with us each week.

“Our Bus Driver of the Year event is always a great opportunity to highlight the technical expertise and professionalism of our driving team. This year was no different, with incredible scores posted across the board.

“A huge congratulations goes to Thomas, Gary and John for their efforts on the day. My fingers are crossed we can bring the UK Driver of the Year title back to Edinburgh this year.”

A tutoring project, which has helped senior school pupils catch up with learning lost during the pandemic, has just had a big win at the Herald Higher Education Awards.

Having helped over 1000 school children to reconnect with learning, Queen Margaret University’s Enhanced Learning Tutoring Initiative (ELTI) was recognised for its ‘Outstanding Contribution to the Local Community’.

This pioneering tutoring project was established in 2020 by Queen Margaret University as a response to the impact that Covid-19 school closures were having upon disadvantaged young people living in local communities.

Now in its final year, ELTI is Scotland’s largest tutoring project, supporting 300 pupils per week, and offering 1-2-1 and small group tutoring sessions in East Lothian and Midlothian secondary schools. It also provides tutoring to community organisations working with disengaged young people.

Confirming the success of the project, research covering a sample of the students who took part in the tutoring project in 2021/22 confirmed that 70% maintained or improved their predicted exam performance.

The project not only helped students who had initially disconnected or needed more support with learning during the challenges of the pandemic, it also provided tutoring jobs for young graduates who had recently qualified from QMU and from other universities across the UK. This allowed graduates to build their teaching skills and experience, which in turn, helped equip some of them to progress careers in educational teaching roles.

This impressive initiative was only made possible through support of the STV Children’s Appeal which fully embraced QMU’s vision to ensure that young people were supported with learning challenges and not disadvantaged by the difficulties encountered during the pandemic. The Herald Higher Education Award also recognises the success of the strong partnership between East Lothian Council and Midlothian Council, which worked incredibly hard alongside the University to ensure that their pupils were supported to succeed in their educational journey during the crucial final years of school.

Queen Margaret University’s Principal, Sir Paul Grice, said: “There has never been any doubt that the Enhanced Learning Tutoring Initiative is a winner for young people. However, we are proud that this ground-breaking partnership initiative has been recognised by the Herald Higher Education Awards for the positive impact it has made on so many young learners at such an important period in their educational journeys. The addition of tutoring support has ensured that many pupils have not become disadvantaged in learning and have the chance to move forward with confidence and fulfil their potential in life.

“I pay tribute to the incredible teamwork across Queen Margaret University, East and Midlothian Councils, and the STV Children’s Appeal which has helped make this widening access initiative such a success.”

Irwin Mitchell Scotland staff have moved into Wright, Johnston & Mackenzie’s (WJM) Glasgow and Edinburgh offices following the firm’s strategic investment in WJM last year.

In Glasgow, 13 Irwin Mitchell staff will now be based out of the Grade A office space at St Vincent Plaza in the heart of the city’s IFSD Central Business District.

This follows the recent announcement that newly-appointed Irwin Mitchell Partner Kim Leslie – who brings 24 years’ experience in personal injury law – would lead a team of complex personal injury specialists based out of WJM’s St Andrew Square office.

Fraser Gillies, Managing Partner at WJM, said: “The combining of our firms has significantly increased the geographical spread of the skill and expertise we can offer our clients.

“We are excited to welcome our Irwin Mitchell colleagues to our Glasgow and Edinburgh offices which will facilitate an even better and joined up service for clients across both firms as we continue to seek growth across the UK and internationally.”

Irwin Mitchell Scotland predominantly work in banking and finance and complex personal injury work, while WJM specialises in corporate, private client, property and asset management.

In England and Wales, Irwin Mitchell provides a full suite of legal and financial services which have now been opened up to Wright, Johnston & Mackenzie’s clients.

Mark Higgins, Managing Partner for Irwin Mitchell Scotland, said: “We’re pleased to confirm our move into our new IM Scotland offices, supporting growth in the region.

“Our developing presence in Scotland helps our legal teams build on existing local relationships and networks to support clients in the region, demonstrating our commitment to meeting the needs of clients across the country.”

Forever Edinburgh partners with businesses to capitalise on the ‘Swift lift’

Scotland’s capital is gearing up to welcome US superstar Taylor Swift for the first time, with Forever Edinburgh announcing a programme of activity to help visitors, residents and businesses enjoy the benefits of the concert.

Over 200,000 Swifties will descend on the city next month for the three Taylor Swift | The Eras Tour shows at the Scottish Gas Murrayfield Stadium on 7^th, 8^th and 9^th June.

The pop icon is set to bring entertainment and economic value, coined the ‘Swift lift’, with shows in the UK expected to gross a combined £1 billion according to Barclays. This includes an average of £121 on accommodation, £111 on travel and £56 on a pre-concert meal.

That impact is already being seen in Edinburgh, with hotels reporting increased demand.

Forever Edinburgh, the city’s destination marketing and promotions brand, which is run by The City of Edinburgh Council is looking to capitalise on this by announcing a series of experiences for those living, visiting and working in the city.

Launching on Thursday, 6^th June, more than 50 local hospitality and tourism businesses have come together to create the ‘Edinburgh Taylored Taste Trail’, which was established by Forever Edinburgh.

Across the city, fans can enjoy Taylor themed sweet treats from Babyfaced Baker, Cuckoo’s Bakery and the Little Bakery. Bonnie and Wild, Cold Town House, Hard Rock Café, Brewhemia, Mackays on the Mile, Mimi’s Bakehouse, and Edinburgh Street Food are offering dedicated menus including themed dishes, Taylor-themed brunches and afternoon teas.

Themed cocktails and mocktails will be available at many of the city’s best bars including Elio’s, Copper Still, Angel’s Share, Revolve Bar, Holyrood Distillery, and the Alchemist.

Elsewhere, Camera Obscura will be hosting a Giant Kaleidosphere dedicated to the Eras musician and in Gorgie, Tynecastle Park is hosting an interactive Swiftie Bingo, open to all ages.

This unique Taylored experience will showcase the best of Edinburgh’s retail, hospitality, and food & drink scenes, encouraging fans and their friends to explore the city’s diverse neighbourhoods by foot, tram, bus, or other modes of transport.

Featured prominently on Forever Edinburgh’s dedicated Swift Fan Hub, the Taylored Taste Trail will beaccompanied with a Taste Trail map, a list of top tips to help fans plan ahead and make responsible choices, plus a guide to Edinburgh for Swifties.

Through The Swift Fan Hub, fans can seamlessly create the ultimate Edinburgh experience and fully immerse themselves in all the city has to offer, with a Taylor twist. City leaders have also organised a welcome gift for Swift, collaborating with a selection of Edinburgh businesses to build a hamper full of Scottish goodies. Participants include Eateaket, Edinburgh Gin and kiltmakers Kinloch Anderson, who have made three unique gifts for Taylor from a newly created Edinburgh 900 Tartan.

A personalised itinerary is also enclosed with the must-dos for Swift to visit during her stay, which was personally crafted and gifted to the star as part of the wider city gesture. This is based on her favourite things such as a visit to cat café Maison de Moggy and experiencing Edinburgh’s music scene.

 Culture and Communities Convener, Councillor Val Walker said: “We’re enchanted to be welcoming Taylor to the city and to be able to bring all these businesses together to provide a fun weekend for residents and visitors alike. We aim to ignite curiosity among fans to venture across the city, spreading foot traffic and benefits throughout.

“Our goal is to cultivate a positive fan experience, fostering lasting advocacy for Edinburgh among our visitors while ensuring a positive impact on residents. It’s a great opportunity to support Edinburgh businesses and the local economy, so her visit will give a ‘Swift lift’ to the city.”

Neil Christison, VisitScotland’s Regional Director said: “Taylor Swift is a phenomenon, and her shows have created a real buzz in the city. We know gig tourism is a growing global trend, with fans seeking to turn their live music experience into a bigger exploration of the destination. The Edinburgh Taylored Taste Trail is an excellent way to engage with the fanbase and encourage them to explore businesses across

A five-point plan for immediate action by the new government is at heart of the British Chambers of Commerce Election Manifesto published today. 

The BCC wants to see:

• An Industrial Strategy with green innovation at its heart.
• Better skills planning, bringing businesses and training providers together.
• Business rates reform to encourage growth and investment.
• Improved relations with the European Union to cut the costs for business.
• A Government appointed AI champion for SMEs to spearhead uptake of new technology.

The five-point plan is part of the BCC’s ‘Future of the Economy’ manifesto. The manifesto includes the biggest ideas from a series of extensive policy documents published this year, focusing on the key economic challenges identified by the BCC. The challenges are: Green Innovation, People and Work, Local Economies of the Future, Global Britain and the Digital Revolution.

The manifesto has been brought together after extensive consultation with the Chamber network, the BCC’s Business Council, external stakeholders, and academics.

Baroness Martha Lane Fox, President of the BCC said:

“In the frenzy of the election campaign, it’s crucial that all politicians focus on the power of British business.

“As I travel across the UK meeting Chambers and their businesses, I hear amazing stories of people determined to grow their businesses and make a difference in our remarkable country. But time and again businesses tell me they want to see a long-term vision for the economy.”

“Our manifesto showcases practical ideas on how politicians can help companies successfully navigate the challenges and opportunities our economy faces. It’s a blueprint for boosting productivity and a pathway to higher growth.

“Whichever party is in power after July 4^th the immediate focus must be on implementing our five-point-plan for business. The stakes for business from the next government could not be higher.”

Shevaun Haviland, Director General of the BCC said: 

“A General Election is an important time for our country, our economy, and our businesses.

“The companies we represent are the drivers of economic growth and the employers of millions of people. They need to know that politicians have got their back. Once the votes are counted – we want government to know how to help business. Our five-point-plan is clear.

“As companies play their part in the UK’s net-zero journey, we desperately need an industrial strategy with green innovation at its heart.

“Firms are constantly telling us they can’t get the skills they need. We need better strategic planning on skills that helps business and training providers work together.

“In local communities, firms are crying out for a fairer business rates system. Over a quarter (26%) of companies told us earlier this year they’d changed plans to upgrade or open premises because of the system.

“The EU is the UK’s biggest market, so we urgently need to get a better trading relationship with our closet neighbour. It’s not about rewriting the referendum result, it’s about cutting red-tape and promoting trade.

“The world of AI has huge potential to boost economic productivity. But it’s important that SMEs aren’t left behind, or vulnerable, as new technology accelerates. A Government appointed AI champion will help spearhead a boost in AI uptake by SMEs.

“We believe our 5-point plan creates an immediate pathway for a new government, of whatever party, to help businesses succeed. When business succeeds, the country succeeds.”