Law firms face a variety of challenges from a VAT perspective, one of which is the question of whether to account for VAT on disbursements charged to clients. This is a common problem area, as there are many different types of recharges which are commonly described as disbursements, but only some can be treated as
Making Tax Digital (“MTD”) came into force on 1 April 2019. It is a common misunderstanding that MTD only affects submission of VAT returns but there is more to it. HMRC are being more prescriptive on the VAT information to be recorded in accounts. It is no longer a case of recording invoices or payments.
A new ‘domestic reverse VAT charge’ will be introduced for certain supplies of construction services. The measure is being introduced to remove the opportunity for fraudsters to charge VAT and then not pay the VAT to HMRC. The rules will mean that the recipient rather than the supplier will account for the VAT due. The measure
Some companies are concerned about how Brexit will affect VAT. However, we feel that in the short term, ie until we are closer “leaving date”, very little will change. The Government published a useful paper ‘The Process for Withdrawing from the EU’ which provided details of the legal process and the timelines which will be
The Court of Justice of the European Union (CJEU) has made a landmark ruling in the long-running dispute between Brockenhurst College, a further education provider, and the taxman. The college received income from meals served in its student restaurant and ticket sales for student productions performed in its theatre. After initially accounting for VAT the
HMRC recently lost a first tier tribunal case on the recovery of VAT on the purchase of six cars. Although most VAT registered businesses are able to recover the VAT on the purchase of commercial vehicles the rules for the recovery on a car state two conditions must be met:
Having spent all my career in the wonderful VAT world since its introduction in 1973 I just thought I would share a few personal observations faced with Brexit. A wise man once said if you can understand the past you can prepare for and shape the future. So this is a very short abbreviated history
Assuming that the UK leaves the EU as a result of the referendum of 23 June 2016, there are likely to be some changes to the UK VAT system. All 28 member states must operate VAT in accordance with Directive 2006/112/EC, which sets out a broad framework governing rates of VAT, deduction of input tax,
The one-stop VAT service starts from 1 January 2015 for businesses supplying what are collectively known as ‘digital services’ in the EU.
Businesses which currently offer prompt payment discounts (PPD) to their customers need to be aware that there are some changes ahead to the rules.