back to article HMRC U-turns on VAT rules for cloud

HMRC has U-turned on its proposals to hand out VAT refunds just for large system integrators, while forcing public sector bodies purchasing off-the-shelf "cloud" services to pay the full whack. Last year the body published guidelines that would effectively penalise public sector organisations for buying cheap, standardised off …

  1. Doctor Syntax Silver badge
    Facepalm

    "Hardware purchases are not subject to the refund, unless they are provided as part of a managed service."

    So any public sector entity competent enough to roll its own gets penalised for not pouring some of its funding into a service provider's profits. In turn that means that there's no incentive for such entities to maintain their own competence. And we wonder why the public sector regularly gets taken to the cleaners by service providers.

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