Revenue & Customs Briefs released in January 2016

Revenue & Customs Briefs released in January 2016

VAT MOSS

HMRC released Revenue & Customs Brief 4/2016 on 8 January 2016 outlining a simplification available to businesses that currently trade below the VAT registration limit and supplying e-services to consumers in other EU countries. There is a less restrictive approach to the evidence needed to show where a customer belongs. For businesses that fall into this category it is now only necessary to obtain one piece of evidence of where a customer belongs rather than two or three. The business needs to be satisfied that the information it holds is correct.

The Revenue & Customs Brief also reminds suppliers of e-services that have income levels below the VAT registration limit to consider whether they are in business. It’s difficult to see how a someone selling through a website could be seen as anything other than in business. Each case has to be considered on its own merits.

VAT Grouping provisions

On 14 January 2016 HMRC published Revenue & Customs Brief 3/2016 announcing a consultation on its proposed changes to the VAT grouping provisions following the decisions of the CJEU on Laurentia + Minerva and Skandia.

Reverse charge for wholesale supplies of telecommunication services

HMRC published Revenue & Customs Brief 1/2016 on 15 January 2016 announcing that from 1 February 2016 wholesale supplies of telecommunication services would be subject to the reverse charge. This means that the recipient of the supply will be responsible for accounting for output VAT on the supply received rather than the supplier. This measure is to combat a fraud that has been detected. Similar measures apply to supplies of mobile telephones, computer chips, emissions allowances, gas and electricity.

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