VAT Blog
Latest news, thoughts and articles from the world of VAT.
Revised Form 64-8, New Online help for small businesses
No major VAT developments from HMRC last week. However the following may be of interest: On February 23: HMRC announced changes to the Form 64-8 for authorising your agent. These include the facility to complete and submit the form on-line. Also on February 23, HMRC...
Separating businesses to avoid VAT
I’ve had a number of queries recently about splitting up small businesses to avoid being registering for VAT and whether or not HMRC will challenge such arrangements. So I thought it would be useful to explain how the law works and how HMRC respond when they come...
Unjust enrichment and other issues
There is a mix of news from HMRC over the past few days all of which can be found here http://www.hmrc.gov.uk/news/index.htm on their website. On 16 February, HMRC issued a podcast explaining how the new compliance checks which come into effect on 1 April 2009 will be...
Validation of VAT invoice
Hi M, I need to check out whether a VAT registration number quoted by a tradesman is actually valid. I'm sure there was HMCE site which allowed you to plug in the number and get it verified but I may be wrong and I certainly can't find it now. Can you help please ?...
Recovering VAT on commercial property costs
One of the most regular VAT questions is whether you can recover VAT on the costs of repairing or converting a commercial property. A lot of businesses have spare office space, or a disused warehouse or factory and want to generate some rental income to help cover...
Changes to EC sales lists and reverse charge rules from 2010
HMRC have issued Revenue and Customs Brief 02/09 here http://www.hmrc.gov.uk/briefs/vat/brief0209.htm. It explains changes re submission of EC sales lists and the time of supply for services subject to the reverse charge which will be introduced from 1 January 2010.
Further guidance on temporary VAT rate reduction
HMRC have published here http://www.hmrc.gov.uk/vat/vat-rate-change.pdf further guidance about the temporary VAT rate change. It covers a number of specific issues such as sales of season tickets prior to 1 December 2008, difficulties with cash registers and issuing...
vat on loans
Q: I am filling in first vat return since registering.I have a loan on a van. How do I work out the vat so far paid and claim it back. Cheers Dean. A: I assume you mean VAT on the van purchase? VAT isn’t charged on loan interest. As far as the van is concerned, you...
Paying tax online by credit card and VAT Notes No 4 2008
A few further developments this week to report. First, HMRC has announced that it will now be possible to pay certain taxes, including VAT, by certain credit cards online. See here http://www.hmrc.gov.uk/payinghmrc/credit-card.htm for further details. VAT Notes No 4,...
What does “supplied where received” mean?
What does supplied where received mean? I was talking to an old friend recently about VAT. He runs his own business and does his own VAT returns, having originally trained as an accountant many years ago. He was making the point that unlike direct taxes, VAT seems to...
Changes to the Place of Supply of Services Rules
Just before Christmas, HMRC issued a Consultation Document about the proposed changes to the place of supply rules that are due to be introduced between 2010 and 2015. It can be downloaded here...
Exchange rates and Lithuanian VAT rate change
See the HMRC news site here http://www.hmrc.gov.uk/news/index.htm for VAT Info Sheets 01/09 and 02/09 which include information respectively about a change of VAT rate in Lithuania and exchange rates for non-EC businesses registered for VAT in the UK using the Special...
VAT liabilty of mechanised cash bingo(MCB) and gaming machine takings
HMRC have published Revenue & Customs brief 63/08 here http://www.hmrc.gov.uk/briefs/vat/brief6308.htm which confirms their view about the VAT liability of MCB and gaming machine takings. In December 2005, UK law was changed to make takings from gaming machines...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Conversions and renovations: how to get the 5% reduced rate
When can you save VAT on conversions and renovations? I've had a number of queries about VAT and property conversions and renovations recently - i.e. dwellings and certain other residential/charitable use properties. You can save a lot of money if you understand how...
VAT and agents
The subject of VAT and agents is particularly complicated. One of the main reasons for this is that the words "agent" and "principal" are often used to describe different commercial situations. My Compact Oxford Dictionary defines the word “agent” as any of the...
Contractors, DIY claimants and VAT on “builder’s materials”
This week, I'm discussing the subject of VAT on "builders' materials". If you're a property developer or you're planning to make a DIY (i.e. self-build) home-builder or home-converter claim, you can only claim VAT on certain goods, which are defined as "builders'...