Notice Information
Notice Title
Vat Split Payments Proof of Concept
Notice Description
His Majesty's Revenue and Customs (HMRC) invites interested persons (Tenderers) to tender for a contract to develop a Proof of Concept (PoC) to illustrate how extraction of VAT from payments (split payment) on real-time payment channels could work. The concept of the PoC is the idea that a payment might be split into elements which are then routed to different destinations. In a VAT context that is the notion that when qualifying goods or services are bought, the VAT within the purchaser's payment could be routed to HMRC and the seller only receives the net amount. Initial focus is on exploring the feasibility of splitting payments in a specific area of VAT for goods and services bought by UK consumers from non-compliant overseas sellers. This will test a range of capabilities including the technology's ability to know when VAT is chargeable or not. Also, whether an intervention can be made without the consent of the seller or buyer, something that, as far as we are aware, known examples of split payment elsewhere are unable to do. Such a mechanism would be driven by either payments system messages (e.g. the location of a seller or a buyer) or new data sources (e.g. product codes, e-invoices or equivalent). Currently, as far as we are aware, there are no marketed solutions available, and we are not aware of others asking the market to develop such solutions. HMRC's current emphasis is only to discover whether technology is capable of real-time payment interventions to tackle overseas VAT non-compliance. This will inform policy development and dialogue. The PoC will be carried out in 3 Phases (Phase 1 - Basic Capability Development, Phase 2 - Targeted Capability Development, Phase 3 - Advanced Capability Development), Phases 1 and 2 of the PoC must be completed no later than 31 May 2024, and all Phases of the PoC must be completed and invoiced before 31 January 2025. However, HMRC would prefer completion of all three (3) Phases by 31 July 2024 if possible. Within these deadlines the timings of the Phases are for the Tenderers to determine as part of their proposal. HMRC intends to award up to a maximum of three (3) contracts in relation to this PoC to develop solutions for both card (Card payments should be taken to mean payments through debit and credit cards, as well as linked uses of digital wallets (whereby a wallet acts as a processing portal through which a payment from a linked card is made) and non-card payments (Non-Card payments should be taken to mean both Bacs and Faster Payments, and include linked uses of digital wallets (whereby a wallet is pre-loaded with funds transferred to it). A Tenderer's ability to cover both of these forms of payment is a mandatory requirement for participation in the PoC. The overall funding available for all contracts awarded under this PoC is PS4,000,000 (Vat Excl), the cap for any individual contract will be PS1,666.666 (Vat Excl). Additional information: This requirement will be met by an eSourcing RfP using HMRC SAP Ariba. Please ensure you are registered with the HMRC SAP Ariba to gain access to the RfP documentation which will contain full details. If you are not already registered, the registration link is: http://hmrc.supplier-eu.ariba.com/ad/register/SSOActions?type=full As part of the registration process you will receive a system generated email asking you to activate your SAP Ariba supplier account by verifying your email address. Once you have completed the activation process you will receive a further email by return confirming the 'registration process is now complete' and providing you with 'your organisation's account ID' number. If an email response from HMRC is not received within one working day of your request, please re-contact sapariba.hmrcsupport@hmrc.gsi.gov.uk (after first checking your spam in-box) confirming when your registration request was first made. Once you have obtained 'your organization's account ID' number, please email james.power1@hmrc.gov.uk and copy in Ian.anderson1@hmrc.gov.uk and e.procurement@hmrc.gov.uk with your account ID number, you will then receive an e-mail confirming access. Further information about HMRC's procurement tool SAP Ariba, Suppliers Guide and general information is available on the HMRC website: www.hmrc.gov.uk/about/supplying.htm If you have already registered on SAP Ariba then you may also need to re-register on HMRC's SAP Ariba in order to be added to the event.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac
- Publication Source
- Contracts Finder
- Latest Notice
- https://www.contractsfinder.service.gov.uk/Notice/9aa430ee-b5e0-495c-9c13-7a57775dd94c
- Current Stage
- Tender
- All Stages
- Planning, Tender
Procurement Classification
- Notice Type
- Tender Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Open
- Procurement Method Details
- Open procedure (above threshold)
- Tender Suitability
- SME
- Awardee Scale
- Not specified
Common Procurement Vocabulary (CPV)
- CPV Divisions
48 - Software package and information systems
66 - Financial and insurance services
72 - IT services: consulting, software development, Internet and support
-
- CPV Codes
48110000 - Point of sale (POS) software package
48170000 - Compliance software package
48441000 - Financial analysis software package
48442000 - Financial systems software package
66110000 - Banking services
66151000 - Financial market operational services
66170000 - Financial consultancy, financial transaction processing and clearing-house services
72220000 - Systems and technical consultancy services
72230000 - Custom software development services
72240000 - Systems analysis and programming services
Notice Value(s)
- Tender Value
- £4,000,000 £1M-£10M
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 20 Apr 20232 years ago
- Submission Deadline
- 22 May 2023Expired
- Future Notice Date
- 18 Nov 2022Expired
- Award Date
- Not specified
- Contract Period
- 28 Jun 2023 - 31 Jan 2025 1-2 years
- Recurrence
- Not specified
Notice Status
- Tender Status
- Active
- Lots Status
- Not Specified
- Awards Status
- Not Specified
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- H M REVENUE & CUSTOMS
- Contact Name
- Available with D3 Tenders Premium →
- Contact Email
- Available with D3 Tenders Premium →
- Contact Phone
- Available with D3 Tenders Premium →
Buyer Location
- Locality
- SALFORD
- Postcode
- M2 5BS
- Post Town
- Manchester
- Country
- England
-
- Major Region (ITL 1)
- TLD North West (England)
- Basic Region (ITL 2)
- TLD3 Greater Manchester
- Small Region (ITL 3)
- TLD33 Manchester
- Delivery Location
- Not specified
-
- Local Authority
- Manchester
- Electoral Ward
- Deansgate
- Westminster Constituency
- Manchester Central
Further Information
Notice Documents
-
https://www.contractsfinder.service.gov.uk/Notice/9aa430ee-b5e0-495c-9c13-7a57775dd94c
20th April 2023 - Opportunity notice on Contracts Finder -
https://www.contractsfinder.service.gov.uk/Notice/a80623af-52b4-493a-babb-c778c259acf7
2nd November 2022 - Early engagement notice on Contracts Finder
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.
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