--- title: "Vat Split Payments Proof of Concept" ocid: "ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac" markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac.md" json_url: "https://d3tenders.com/contract/ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac.json" source: "Contracts Finder" current_stage: "Tender" buyer: "H M REVENUE & CUSTOMS" published: "2023-04-20" --- # Vat Split Payments Proof of Concept Buyer: H M REVENUE & CUSTOMS Current stage: Tender OCID: ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac) [Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-56361231-6e53-41db-b288-8a184d7638ac.json) ## Summary The contracting process involves a tender titled "Vat Split Payments Proof of Concept" initiated by His Majesty's Revenue and Customs (HMRC) for the development of a Proof of Concept to extract VAT from real-time payments for UK consumers from non-compliant overseas sellers. The procurement process encompasses three phases with specific completion deadlines by 2024 and a maximum funding of £4 million allocated across multiple contracts. The focus is on enhancing technology capabilities to enable real-time payment interventions for overseas VAT compliance. This tender presents an opportunity for businesses, particularly in the financial and technology sectors, to participate in a cutting-edge project aimed at combatting VAT non-compliance. Businesses with expertise in banking services, financial consultancy, software development, and system analysis are well-suited to engage in this procurement opportunity. By addressing the technical feasibility of Split Payment mechanisms, successful bidders can potentially contribute to advancing tax modernisation efforts and promoting fair tax compliance in overseas transactions, ultimately aiding in the development of VAT enforcement policies. ## Notice 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. ## Key Details | Field | Value | | --- | --- | | Publication source | Contracts Finder | | Latest notice | https://www.contractsfinder.service.gov.uk/Notice/9aa430ee-b5e0-495c-9c13-7a57775dd94c | | 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 | | All stages | Planning, Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 20 Apr 2023 | | Submission deadline | 22 May 2023 | | Future notice date | 18 Nov 2022 | | Award date | Not specified | | Contract period | 28 Jun 2023 - 31 Jan 2025 | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £4,000,000 | | Lots value | Not specified | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Not specified | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | H M REVENUE & CUSTOMS | | Locality | SALFORD | | Post town | Manchester | | Postcode | M2 5BS | | Country | England | | ITL 1 | TLD North West (England) | | ITL 2 | TLD3 Greater Manchester | | ITL 3 | TLD33 Manchester | | Local authority | Manchester | | Electoral ward | Deansgate | | Westminster constituency | Manchester Central | | Delivery location | Not specified | ## CPV Codes ### Divisions - 48 - Software package and information systems - 66 - Financial and insurance services - 72 - IT services: consulting, software development, Internet and support ### 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 ## Release History - 20 Apr 2023 at 07:00 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/9aa430ee-b5e0-495c-9c13-7a57775dd94c - 2 Nov 2022 at 16:21 - Planning - Market Engagement Notice - https://www.contractsfinder.service.gov.uk/Notice/a80623af-52b4-493a-babb-c778c259acf7 - 28 Oct 2022 at 11:43 - Planning - Market Engagement Notice - https://www.contractsfinder.service.gov.uk/Notice/a80623af-52b4-493a-babb-c778c259acf7 ## 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 ## Notice URLs - http://hmrc.supplier-eu.ariba.com/ad/register/SSOActions?type=full ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. 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