HMRC published 2 new Revenue & Customs Briefs last week concerning important VAT issues.
R & C Brief 58/09 (2 October 2009) sets out HMRC’s policy about non-EU suppliers of certain telecommunications, broadcasting and ISP services.
It applies to businesses who may be considering changing their place of EU VAT registration to a member state with a lower VAT rate under the special scheme whereby such businesses can choose their country of registration. HMRC have made it quite clear that they may challenge any businesses who try to cancel their UK registration in such circumstances.
Information Sheet 15/09 sets out the exchange rates for businesses registered under the scheme for the period to 30 September 2009.
R & C Brief 62/09 (9 October 2009) follows the decision of the Tribunal in the case of Garsington Opera.
This concerns the use of the standard partial exemption method by theatres and whether VAT on the cost of staging shows could be treated as residual input tax when the admission charges were exempt. HMRC have confirmed that they will not appeal the decision but the Brief confirms that they will challenge the use of the standard method by such theatres unless there is a direct and genuine intention to make both taxable as well as exempt supplies.
Although the Brief refers to theatres, it makes interesting reading for any businesses who use the standard partial exemption method and whether HMRC could challenge its use in the future.
These Briefs are available to download at the HMRC newspage here http://www.hmrc.gov.uk/news/index.htm