News

We reported earlier this month that the Government has published draft legislation increasing the Intrastat arrivals threshold for reporting to £1,200,000 (from £600,000) with effect from 1st January 2014. This means that many businesses will no longer be required to complete Intrastat arrivals reporting. We understand that HMRC will monitor Intrastat arrivals values and will contact taxpayers that are no longer required to submit Intrastat arrivals returns. If you believe…

The UK Government has published draft legislation increasing the Intrastat arrivals threshold to £1,200,000 (from £600,000) from 1 January 2014.  There are no plans to change the dispatches threshold of £250,000.

HMRC has issued a revised public notice (Notice 700/45) on how to correct errors on VAT returns.  The Notice explains how to correct errors and when a penalty may apply. It is important to correct errors in line with the HMRC guidelines to avoid problems.  If you would like help please call  us.

Amendments to the tax code have been agreed by the Romanian Government. The VAT amendments include:

• Businesses purchasing goods or service from inactive or deregistered taxpayers may deduct VAT incurred if the supplier is in bankruptcy proceedings.
• From 1st September 2013 the reduced rate of VAT of 9% applies to the supply of bread, wheat and flour
• From 1st September 2013 the reverse charge applies to the supply of…

The Belgian government has decided to withdraw the VAT exemption for lawyers with effect from 1st January 2014. After 1st January 2014 all lawyers services will be subject to the standard rate of VAT at 21%. Draft legislation has not yet been published.

Draft legislation has been published in South Africa requiring foreign suppliers of e-commerce services to register for VAT in South Africa and account for VAT on supplies made to South African residents.  It is proposed that this will come into effect from the 1st January 2014.  Suppliers will be required to register where they supply e-commerce services to South African residents  or where payment is made from a South African…

The French Government has announced that some countries established outside the EU will no longer have to appoint a Fiscal Representative in France if their country has  a mutual agreement with France.  The countries concerned are Argentina, Australia, Azerbaijan, Georgia, India, Iceland, Mexico, Moldova, Norway, Republic of Korea, St Barts Island. This means that businesses established in these countries can register for VAT without appointing a fiscal representative.

From 1st July 2013 fiscal representatives in Norway will no longer be jointly and severally liable for VAT due by non-established principals.  Also from 1st July invoices do not have to be raised via a fiscal representative.

From 1st July 2013 quarterly VAT payers must submit their VAT returns electronically  through the e-tax system of the Revenue Office of Macedonia.  Taxpayers who have not registered with the e-tax system will be unable to submit the electronic VAT return on  time.

Accountancy Magazine features an article written by Head of Consulting, Andy Spencer, discussing the wider implications of Grattan PLC v HMRC (C-310/11) case. The case, which was brought in front of the European Court of Justice (ECJ) highlighted what the advocate general of the ECJ, Juliane Kokott, called another example of "UK business implementing these so called 'complex sales methods'." The case featured a dispute over VAT paid before…