VAT – EC Sales List
We have written previously about the introduction of the VAT package on 1 January 2010. HMRC have now released Revenue & Customs Brief 02/09 which specifically provides details of how the UK will be implementing changes in relation to the submission of EC Sales Lists (ESL). Readers may recall that from 1 January 2010 the scope of ESLs will increase significantly and include cross border supplies of services as well as goods. The brief also comments on the changes to the time of supply rules for services.
The main changes to ESLs are as follows:
– ESLs for services may be submitted calendar quarterly. ESLs for goods may also be submitted calendar quarterly where supplies did not exceed £70,000 in any of the four preceding quarters.
– ESLs for goods must be submitted monthly where these conditions are not met.
– ESLs can still be submitted quarterly for services but can be submitted monthly if this is easier for the business in question.
– The time limit for submitting ESLs is also likely to be reduced to 14 days for paper returns and to 21 days for electronic submissions.
In relation to the supply of services the main changes are as follows for ‘reverse charge’ type supplies:
– The time of supply will be the earlier date of when the service is completed or payment is made.
– Where the supply of services is continuous, the time of supply will be derived using billing or payment periods. If no invoice is issued or payment made during a calendar year, the time of supply will be the end of the calendar year.
These changes will also determine when a supplier is required to include the transaction on an ESL.