VAT changes - Pre-Budget Report

Once again, changes announced by HMRC left me totally unmoved, as they announced the proposed changes some months ago. In short:

A revised electronic means of reclaiming VAT incurred in other EU countries.

Changes to the "time of supply" rules for intra-EU supplies.

Changes to the "place of supply" rules for intra-EU supplies of services.

Introduction of EC Sales Lists for intra-EU supplies of services - hitherto only required for supplies of goods.

If you consider that you might be affected by any of these changes, please ask.

Intrastat Changes

There is a reasonably good chance that you will not have heard the expression "Intrastat", let alone know what to do with it! In short, the EU demand that each Member State collects statistical information on trade going between Member States. For certain levels of trade, this is collected using the "intrastat" procedure. Hitherto, the level for both sales ('dispatches') and purchases ('arrivals') was £270,000 annually. The levels are now changing, from 1 January 2010 to £600,000 for arrivals and £250,000 for dispatches. If your sales or purchases exceed those levels, you are then roped into the system with no chance of escape - well, not for a while anyway. Please contact me if you need a more detailed explanation.

www.davebrownvat.co.uk