MOSS – is it a business or a hobby?
Some of you will remember this time last year when everyone was in a real tangle trying to understand the VAT registration requirements for the MOSS scheme for businesses making B2C digital sales to customers in other EC countries. HMRC kept reminding that you had to register EVEN IF YOUR SALES TO UK CUSTOMERS WERE BELOW THE VAT REGISTRATION LIMIT.
Well it seems that some people may have taken this a bit too seriously and registered even though their “sales” could be regarded as a hobby, or (to use the technical term) NOT made “in the course or the furtherance of a business”…
Check out HMRC’s Revenue & Business Brief 04/2016 http://tinyurl.com/hel2aar if you think this may apply to you or any of your clients.
VAT group registrations
HMRC has announced a consultation about the UK’s VAT group registration rules following recent rulings by the European Court of Justice. See HMRC’s Revenue & Customs Brief 05/2016 http://tinyurl.com/j77xln8 for further details and how to take part in the consultation.
One possible change would extend the VAT grouping rules beyond “corporate bodies” so that partnerships and other types of businesses can take advantage of the facility. So take this opportunity to tell HMRC what you think about the subject.
What actually happens if HMRC disagrees…..?
I’ve had some interesting feedback to my recent blog “What happens if HMRC disagrees…” http://tinyurl.com/zxgqwj6 about the VAT liability of refurbishment or conversion services. But the same principles apply to any assessment or decision issued by HMRC, regardless of the type of business or transactions involved.
The appeals process is long and costly and can cause a real hassle for businesses, whether you’re the supplier or the customer, so make sure that you charge or pay the right amount of VAT for any sales or purchases. You don’t want to end up in a long and expensive dispute with HMRC.
Publishing on Amazon
One of my latest projects is uploading my VAT books onto Kindle so that they can be purchased from Amazon, plus we’ll be printing some real paper editions this year. The Kindle publishing platform is a great of developing additional online presence – and I’ll admit to feeling quite excited about seeing my own work in print on the Amazon platform!
You can find more details about my e-books on residential property development and dealing with VAT on transactions with associated businesses on https://vatexchange.co.uk
Marie
February, 2016