Latest newsletter: VAT on Amazon sales, renovations, conversions & self-builds, getting reliable rulings from HMRC
Hi there
So where did July go? Well I guess it was the 3 to 4 days of summer that gave us all a bit of a surprise! I just hope that there is a bit more to come.
In the meantime, we’ve completely revamped vatexchange.co.uk and I’m very pleased with the result. It’s the proverbial work in progress and we’ll be making more improvements over the next few months.
Amazon and VAT
An accountant recently asked how his client should account for VAT on sales made on Amazon. It’s an interesting question because there are different ways of selling on Amazon and the VAT liability, as always, follows the commercial and contractual arrangements. In Amazon’s case, there are different sales programmes with various listing and sales fees.
It’s not always easy finding information on Amazon, but you might want to start here:http://tinyurl.com/go434zg which is a good starting page for selling on Amazon. It also includes details about their fee arrangements and some helpful examples of their billing showing fees and VAT.
Technical update: Business Brief 11/2016
Following the judgement of the Upper Tribunal in the case of Intelligent Managed Services Limited, HMRC has issued Business Brief 11/2016 http://tinyurl.com/jpljd7b. It explains HMRC’s position about how the decision affects the transfer of businesses as going concerns to and by VAT groups and when the purchaser does not belong in the UK.
When you can’t rely on a “ruling”….
A partnership which runs 2 businesses contacted HMRC to ask if their businesses were separate for VAT purposes. The officer agreed that the businesses were separate, so the partner now believes that that the partnership only has to pay VAT on one of their businesses. Of course this isn’t right, because if you’re a VAT registered “person”, whether a SP, partnership, limited company etc, the VAT registration applies to all business activities carried out by the “person”.
In this case, it seems that HMRC didn’t get all of the facts, so the officer’s “ruling” is based on incomplete information. It’s a good reminder that it’s essential to give ALL the facts to HMRC, preferably in writing, if you want a reliable ruling.
Are you renovating, converting or building your own home?
I’m currently writing a book for DIY/self-build developers, about VAT on contractor’s services and when you can claim VAT from HMRC to help you save as much VAT as possible on your development. Dealing with VAT can be very confusing and HMRC’s guidance doesn’t explain everything you might need to know. So as well as the technical stuff, I’ll be including a lot of practical advice to help you understand how VAT applies to self-build/DIY developments.
I’m aiming to publish by the end of August, but in the meantime I’d love to hear from youmarie@vatexchange.co.uk if you have any particular queries about VAT on expenditure or the DIY refund schemes. I’ll try to include as much as possible in the book. Check out my recent blog for more information.
In the meantime, please contact me marie@vatexchange.co.uk if you need help on any VAT issue.
Marie
August 2016