New Year - New VAT rules
Just a reminder that the VAT rate reverted back to 17.5% on 1 January. As outlined in my previous blog, special transitional rules apply to supplies spanning that date.
If you supply or receive cross border services, you may be affected by the new rules introduced on 1 January. Changes have been made to the place and time of supply of certain services, there is a new EC Sales List for services and changes have been made to the EC Sales Lists for goods. There is also a new electronic overseas VAT refund procedure.
Last but not least, HMRC have begun to issue letters regarding the compulsory online filing of VAT returns for certain businesses with effect from 1 April 2010. If your turnover exceeded £100,000 in the 12 month period to 31 December 2009, or you register for VAT after 1 April 2010, you will have to file VAT returns online and pay VAT by electronic means.
Jane Stacey is a VAT adviser and a senior manager at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Jane you can call her on 01727 869141.
