Recently updated VAT Notices (September 2016)

HMRC has updated these VAT Notices in recent weeks:

VAT Notice 723A: refunds of VAT in the European Community for EC and non-EC businesses

HMRC 7 September 2016 published an updated version of VAT Notice 723A: refunds of VAT in the European Community for EC and non-EC businesses dated September 2016. There is now a link within the Notice that leads to a PDF file containing the contact details for the Tax Authorities in other EU member states.

VAT Notice 700/50: default surcharge

HMRC updated VAT Notice 700/50: default surcharge on 8 September 2016 dated September 2016 to replace the December 2011 edition.

In the introduction it says the notice contains information on:

  • how to avoid a surcharge
  • how default surcharge works
  • when default surcharge is applied
  • what to do if you think you have a reasonable excuse for submitting your VAT Return or payment late

The notice now contains links to HMRC’s default surcharge officer’s guide.

This notice and HMRC’s internal guidance is worth reviewing as it will help you avoid penalties.

Should I be registered for VAT?

On 16 September 2016 HMRC published an update to VAT Notice 700/1: Should I be registered for VAT?. The new edition includes information on

  • the introduction of new powers which enable HMRC to hold an online marketplace jointly and severally liable for the unpaid VAT of an overseas seller thats trading goods in the UK via that online marketplace
  • the power for HMRC to direct some non-established taxable persons (NETPs) to appoint a VAT representative who is based in the UK.

The Statement of Practice about artificial separation of business activities has been moved.

Taxis and private hire cars

On 19 September 2016 HMRC released an updated version of VAT Notice 700/25: taxis and private hire cars. This is the first update to this notice since it was released in May 2002. The changes, however, are only:

  • to the contact address
  • a new paragraph explaining your rights and obligations
  • a new paragraph how HMRC uses taxpayers information.

There are no changes to the technical content.

This notice is a necessary read for taxi and private hire businesses and anyone advising them.

Place of supply of services

On 28 September 2016 HMRC published an updated version of VAT Notice 741A: place of supply of services dated September 2016 to replace the August 2016 edition. This update adds to Section 13 of the notice guidance on the new use and enjoyment rules on insurance repair services that came into effect on 1 October 2016. The change has been made to prevent insurers based overseas from avoiding VAT on repairs to insured vehicles that are carried out in the UK.

HMRC has also published guidance in its Place of Supply manual on this issue.

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