VAT notes – new edition published
HMRC has published what appears to be the final online quarterly edition of VAT notes which includes a summary of recent changes to the VAT rules. HRMC has confirmed that from January 2019 ‘VAT Notes’ will no longer be published online as VAT updates are published in real time on GOV.UK. The small number of businesses that are exempt from online filing will continue to receive a printed version of the VAT Notes with their quarterly paper returns.
The main topics covered in the latest edition are as follows:
- Small supplies of digital services to consumers in the EU. A new threshold to determine the place of supply of digital services to private consumers comes into effect from 1 January 2019. This will allow UK businesses whose total supplies of digital services to consumers across the EU is less than €10,000 (£8,818) to account for VAT in the UK rather than accounting for VAT in the country where their customers are located. Businesses below this threshold will continue to be able to use the current rules if preferred.
- Fulfilment House Due Diligence Scheme. The new Fulfilment House Due Diligence Scheme opened for online applications on 1 April 2018. Businesses that store any goods imported from outside the EU on behalf of others need to apply for approval from HMRC before it can be registered for the scheme. Businesses that only store or fulfil goods that they own, or only store or fulfil goods that are not imported from outside the EU, are not required to register. There are penalties and the possibility of criminal convictions for late applications. Businesses risk having goods seized and will not be able to continue trading legally if they have not been approved by HMRC from April 2019.
- VAT repayments. HMRC is reminding businesses that are due a VAT refund that the money can be paid straight to their bank account. To receive repayments electronically you need to provide HMRC with your bank details which must be in the name of the registered person or company. It can take up to 14 days for the payment to be shown in the bank account.
- A summary of new and revised VAT notices.
HMRC has published the latest quarterly edition of VAT notes which includes a summary of recent changes to the VAT rules.
The main topics covered in the latest edition are as follows:
- VAT Mini One Stop Shop (MOSS) – The new place of taxation rules for supplies of cross border telecommunications, broadcasting and e-services to consumers (B2C) came into effect on 1 January 2015. This change means that businesses who supply these services have to register for VAT in every EU Member State where they have customers. To save the need for businesses affected by these changes to register for VAT in other Member States, a MOSS return can be used. The first VAT MOSS return will cover the period 1 January – 31 March 2015 and must be completed online. The first return must be filed by 20 April 2015.
- Alcohol Wholesaler Registration Scheme (AWRS) – A new scheme is being introduced to tackle alcohol duty fraud by introducing a register of businesses that wholesale alcoholic drinks. Under legislation introduced in Finance Bill 2015 businesses will need to apply to register for AWRS between 1 October and 31 December 2015, or be at risk of trading illegally. From April 2017, it will become an offence for a retailer to buy alcohol from an unregistered wholesaler.
- A summary of new and revised VAT notices.