Notice Information
Notice Title
VAT Split Payments
Notice Description
Following the issue of a Request for Information on 16/07/2021, His Majesty's Revenue & Customs ("HMRC") are considering running an Innovation Partnership with a single or multiple suppliers for the development of a proof of concept for the extraction of VAT from payments ("Split Payment") on real-time payment channels and the connected provision of maintenance and consultancy services to (i) maintain the proof of concept over a specified period of time and (ii) to educate the market and policy makers on how the proof of concept works (the "End Services"). This initiative proposes a first potential use for Split Payment in the UK tax sphere. A successful proof of concept could in turn underpin a positive investment appraisal case within HMRC. Our current focus is solely on testing the technical feasibility of Split Payment, but this is a necessary step if HMRC are to quantify the prospects for potential use in tax compliance. Such use may also help in future efforts towards tax modernisation including automated software links between businesses, payments intermediaries and HMRC, and could further smooth and ease taxpayers' experience of tax administration and help them get their VAT right. Seeking to find a mechanism through which VAT is collected from all overseas supplies of goods and services is part of HMRC's commitment to uphold fairness in the tax system. This aligns with HMRC's strategic objective to 'maintain taxpayers' consent through fair treatment and protect society from harm'. HMRC are considering launching a procurement procedure in January 2023. However, in advance of any procurement, we would like to undertake further market engagement with interested suppliers, including those from the financial industry and FinTechs, to seek views, among other things, on the proposed procurement process and outline technological requirements for a proof of concept focused on Split Payment, specifically to address VAT non-compliance by non-UK sellers of goods and services. If the proposed procurement is undertaken, we are interested in solutions that are used or are capable of being used in the payment ecosystem.
Lot Information
Lot 1
Following the issue of a Request for Information on 16/07/2021, His Majesty's Revenue & Customs ("HMRC") are considering running an Innovation Partnership with a single or multiple suppliers for the development of a proof of concept for the extraction of VAT from payments ("Split Payment") on real-time payment channels and the connected provision of maintenance and consultancy services to (i) maintain the proof of concept over a specified period of time and (ii) to educate the market and policy makers on how the proof of concept works (the "End Services"). This initiative proposes a first potential use for Split Payment in the UK tax sphere. A successful proof of concept could in turn underpin a positive investment appraisal case within HMRC. Our current focus is solely on testing the technical feasibility of Split Payment, but this is a necessary step if HMRC are to quantify the prospects for potential use in tax compliance. Such use may also help in future efforts towards tax modernisation including automated software links between businesses, payments intermediaries and HMRC, and could further smooth and ease taxpayers' experience of tax administration and help them get their VAT right. Seeking to find a mechanism through which VAT is collected from all overseas supplies of goods and services is part of HMRC's commitment to uphold fairness in the tax system. This aligns with HMRC's strategic objective to 'maintain taxpayers' consent through fair treatment and protect society from harm'. HMRC are considering launching a procurement procedure in January 2023. However, in advance of any procurement, we would like to undertake further market engagement with interested suppliers, including those from the financial industry and FinTechs, to seek views, among other things, on the proposed procurement process and outline technological requirements for a proof of concept focused on Split Payment, specifically to address VAT non-compliance by non-UK sellers of goods and services. If the proposed procurement is undertaken, we are interested in solutions that are used or are capable of being used in the payment ecosystem. PIN objectives HMRC would appreciate the views of prospective suppliers on the proposed procurement process and outline technological requirements to aid its formulation of any future procurement scope and procedure. Following evaluation of the PIN responses, if HMRC proceeds with the proposed procurement, we intend to use an innovation partnership. Through this procedure we will work with one or multiple suppliers to develop proofs of concept(s) to test Split Payment's technical feasibility in potentially tackling VAT non-compliance by overseas sellers. The final contract available at the end of the innovation partnership will be for the End Services. Innovation partnership / requirements By using the innovation partnership procurement procedure HMRC can develop solution(s) collaboratively with the bidder(s) that achieve all requirements in the following three Phases: Phase 1 - In the initial phase HMRC would like to test the feasibility of a split occurring when a payment is made by a UK resident to an overseas seller of goods and/ or services. Phase 2 - In the second phase HMRC would like to check what additional information or instructions could trigger the split to occur in response to, for example, a list of compliant or non-compliant sellers, or a binary "split" or "don't split" instruction from HMRC. Phase 3 - In the final phase HMRC would like to explore possible advanced capabilities that can adapt the splitting mechanism to the complexities of the current UK VAT regime. Among these are: a. the need to identify where it is intended that the purchased goods or services are to be delivered and/ or consumed; b. the possibility to apply a split only above or below a certain value threshold; and c. the feasibility for the splitting mechanism to calculate a composite VAT total across a mixed basket of goods and/ or services, each potentially with a different rate of VAT. To be considered for progression to successive phases, HMRC would require suppliers to first successfully meet the requirements of the previous phase(s). Additional information: HMRC invite interested parties to register using the guidance below to contribute your views on this topic. This requirement will be met by an eSourcing RfI using HMRC SAP Ariba. Please can you ensure you are registered with the HMRC SAP Ariba to gain access to the RfI 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) notifying non-receipt and 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 e.procurement@hmrc.gov.uk with your account ID number. Once you have complied with the foregoing you will receive an e-mail confirming access to the RfI. Further information about HMRC's procurement tool SAP Ariba, a Suppliers Guide and general information about supplying to HMRC 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-h6vhtk-037d38
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/030506-2022
- Current Stage
- Planning
- All Stages
- Planning
Procurement Classification
- Notice Type
- Planning Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Not Specified
- Procurement Method Details
- Not specified
- Tender Suitability
- Not specified
- Awardee Scale
- Not specified
Common Procurement Vocabulary (CPV)
- CPV Divisions
66 - Financial and insurance services
72 - IT services: consulting, software development, Internet and support
73 - Research and development services and related consultancy services
-
- CPV Codes
66000000 - Financial and insurance services
66110000 - Banking services
66170000 - Financial consultancy, financial transaction processing and clearing-house services
72222200 - Information systems or technology planning services
72222300 - Information technology services
72227000 - Software integration consultancy services
72230000 - Custom software development services
72240000 - Systems analysis and programming services
72260000 - Software-related services
73120000 - Experimental development services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 28 Oct 20223 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- 9 Jan 2023Expired
- Award Date
- Not specified
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Planned
- Lots Status
- Planned
- Awards Status
- Not Specified
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- H M REVENUE & CUSTOMS
- Contact Name
- ian anderson
- Contact Email
- ian.anderson1@hmrc.gov.uk
- Contact Phone
- +44 3000587827
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
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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Such use may also help in future efforts towards tax modernisation including automated software links between businesses, payments intermediaries and HMRC, and could further smooth and ease taxpayers' experience of tax administration and help them get their VAT right. Seeking to find a mechanism through which VAT is collected from all overseas supplies of goods and services is part of HMRC's commitment to uphold fairness in the tax system. This aligns with HMRC's strategic objective to 'maintain taxpayers' consent through fair treatment and protect society from harm'. HMRC are considering launching a procurement procedure in January 2023. 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Through this procedure we will work with one or multiple suppliers to develop proofs of concept(s) to test Split Payment's technical feasibility in potentially tackling VAT non-compliance by overseas sellers. The final contract available at the end of the innovation partnership will be for the End Services. Innovation partnership / requirements By using the innovation partnership procurement procedure HMRC can develop solution(s) collaboratively with the bidder(s) that achieve all requirements in the following three Phases: Phase 1 - In the initial phase HMRC would like to test the feasibility of a split occurring when a payment is made by a UK resident to an overseas seller of goods and/ or services. Phase 2 - In the second phase HMRC would like to check what additional information or instructions could trigger the split to occur in response to, for example, a list of compliant or non-compliant sellers, or a binary \"split\" or \"don't split\" instruction from HMRC. 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