HMRC has published the latest quarterly edition of VAT notes which includes a summary of recent changes and important notices pertaining to VAT.
The main topics covered in the latest edition are as follows:
- Filing VAT returns online – From April 2012 virtually all VAT registered business will be required to file VAT returns and make payments online. The online filing requirement is being extended to include businesses with a VAT turnover of less than £100,000 who registered for VAT before 1 April 2010. Businesses that have not yet registered to file online are encouraged to do so to ensure they are properly prepared to file online.
- VAT toolkits – HMRC have launched two new VAT toolkits covering partial exemption and VAT output tax. The toolkits are aimed specifically at helping accountants and tax agents reduce the likelihood of mistakes commonly found in VAT returns.
- Lennartz accounting – A reminder that VAT recovery on the purchase of certain assets (such as property and aircraft) on or after 1 January 2011 is restricted to the business use of the asset.
- Entertaining overseas customers – HMRC have now accepted that the UK’s block on the recovery of input tax on entertaining overseas customers is inconsistent with EU law.
- VAT publications – The VAT notes also include a useful list of new and revised VAT publications.