Source: https://tendernation.io/opportunities/01a13b9d-34ae-73c6-b945-17abcdda002a/vat-split-payments [Skip to main content](#main-content) closedGBopen procedure # VAT Split Payments [H M Revenue & Customs](https://tendernation.io/buyers/h-m-revenue-customs) Estimated value £4,000,000 Published 20 Apr 2023 Deadline Closed 22 May 2023 ## Who can bid - Open procedure Anyone can submit a full tender; there is no shortlisting stage. ## About this tender 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 £4,000,000 (Vat Excl), the cap for any individual contract will be £1,666.666 (Vat Excl). Read full description ## CPV classification Banking servicesPoint of sale (POS) software packageCompliance software packageFinancial analysis software packageFinancial systems software packageFinancial market operational servicesFinancial consultancy, financial transaction processing and clearing-house servicesSoftware programming and consultancy services Source Find a Tender (UK) · Notice ocds-h6vhtk-03c230-2023-04-20T08:07:35+01:00 [View official notice ](https://www.find-tender.service.gov.uk/Notice/ocds-h6vhtk-03c230-2023-04-20T08:07:35+01:00) Never miss a tender like this again Get AI summaries, deadline alerts and a bid pipeline for tenders matched to your business. Free to start. 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