More updated VAT Notices – February 2013

More updated VAT Notices

Two new notices:

  • Import VAT relief for goods supplied onward to another country in the EC; and
  • Relief from VAT on bad debts

Import VAT relief for goods supplied onward to another country in the EC

HMRC has published an updated version of Notice 702/7 dated February 2013 to replace the April 2010 edition.

In this new version of the Notice HMRC make it clear that a VAT registered importer acting agent must be acting in his own name. The changes also address changes to the way VAT identification numbers are entered on the import entry.

This updated notice will be of use to any business which imports goods into the EU which will be supplied to a customer in another EU country.

Relief from VAT on bad debts

HMRC has published an updated version of Notice 700/18 dated February 2013 to replace the December 2002 edition.

This notice has, according to HMRC, been re-written to explain the rules and time-limits that apply to Bad Debt Relief claims, remove details of historical changes that are no longer relevant and examples updated for the change in the rate of VAT.

There are a number of references to how the Bad Debt Relief system operated in 1996 and 1997 which appear to be of little relevance today.

This is an important VAT notice that all businesses need to have to hand. As this is VAT we are discussing there are, of course, some exceptions! These include those businesses using:

  1. the Cash Accounting Scheme, and
  2. the Retail Schemes.

In these cases the schemes include built in bad debt relief.

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