VAT Blog
Latest news, thoughts and articles from the world of VAT.
VAT payable in case of sale of goods bought VAT-free
Q: Hello, I wonder if someone can answer this question for me. A couple of years ago I bought a private aircraft from a Swedish dealer who had a Danish company (so it was bought VAT free, because at that time there was no VAT payable on aircraft in Denmark). I believe...
Some change of rate queries
I've had a number of queries over the past few weeks about the change in VAT rate and these ones below are typical of the issues that people are concerned about. Because the rate increases on 1 January many businesses want to ensure that they are taking full advantage...
Notice SIVA 1, TOMS changes and EU VAT Refund scheme
1 December 2009 New Notice SIVA 1 issued by HMRC containing details of the Simplified Import VAT Accounting scheme. 4 December 2009 Revenue & Customs Brief 74/09 sets out transitional arrangements for businesses operating the Tour Operating Margin Scheme from 1...
VAT within a Sub Contractors Invoice
Q: When a subcontractor adds a VAT inclusive bill as part of an invoice and then charges VAT on the whole invoice can I reclaim not only the VAT on the total invoice but also the VAT charged on the original bill? Mike A: Hi Mike You can only recover the VAT on the...
About the 2010 VAT Online and POSS changes
Updated VAT Online Services One subject that’s caught my eye recently on the HMRC website is the information about the updated VAT Online Services. It’s all in anticipation of the introduction of compulsory electronic VAT returns for businesses whose annual turnover...
EC VAT Information
Here is a link to the EC Commission website which has a very comprehensive section about taxation throughout the EC including VAT, including information about VAT in each member state: http://ec.europa.eu/taxation_customs/taxation/vat/index_en.htm
EC rules for place of supply of goods and services
Q: Here is a request for information about the place of supply of goods and services in the EC: 1. What is Place of supply (PoSS) rule for different European countries (eg. UK - place of supply can be Ship from)2. Tax statuses and the respective tax rates of european...
New Years Parties at 15% and a “Light Touch” to be applied to change of rate errors
HMRC has issued Revenue & Customs Brief 68/09 (4 November 2009) giving details of two specific issues relating to the re-introduction of the 17.5% rate on 1 January 2010. First, pubs, clubs, restaurants and other similar retail businesses open over the new year on...
Get those returns and payments in on time!
I’m absolutely sure that no-one needs to be reminded about the postal strike and the need to get your 09/09 paper returns and payments to HMRC by tomorrow. HMRC have not indicated that they will allow additional time to pay or submit because of the postal strike. They...
Artificial Separation of Business and Non-Business Affairs?
Someone posted a query on the Forum this week about disaggregation, ie the artificial separation of businesses to avoid VAT. And it made me think of how we run our lives and how we try to keep business and non-business affairs separate and whether this is the right...
Disaggregation
Q: A friend has been running a hair/beauty salon for a couple of years as a sole trade and is VAT registered. They have now been advised to split it into two businesses, one sole trade and one ltd co to avoid VAT. Without going into detail about how the business(es)...
Revised POA Notice and certain Royal Mail delivery services to become liable to VAT
HMRC has issued Revenue & Customs Brief 64/09 confirming that certain services supplied by the Royal Mail will become liable to VAT from a future date to be confirmed, following a legal challenge to the scope of the exemption in the UK. It will apply to those...
Non-EU electronic service suppliers and partial exemption for theatres
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...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Three ways to save VAT on DIY property developments
How to save VAT on DIY residential property development Doing any type of property development is expensive. The usual rule of thumb seems to be that it will always cost you at least double your initial estimate. And you should then add VAT at 20% to the whole...
2017 and living in interesting times
This time last year, I wrote a blog about what I'd learned in the previous year. It was a very useful exercise from both a personal and business point of view and writing the blog helped me to come into 2016 feeling much more focused than in previous years. This...
VAT and building materials: vanity units, electric gates and all that stuff…
Whether you're a building contractor, commercial property developer or you're doing any sort of DIY/self-build project, the subject of VAT and building materials is one of the most frustrating and difficult. Why is this? Well it's all to do with the VAT cost. If the...