Cross-Border VAT Changes - now effective

HM Revenue & Customs (HMRC) issued some important guidance regarding the changes in the Place of Supply of Services rules which were made effective on 1 January 2010.

These changes affect:

• Businesses supplying services to overseas businesses
• Businesses receiving services from overseas businesses.
• Businesses supplying goods to other EC countries.
• Businesses that want to reclaim VAT incurred in another EC country.

This guidance is part of a package of measures being introduced to simplify and modernise the VAT system for cross-border trading and to counter fraud across the EU. The measures include:

• changes to the basic place of supply of services rules
• changes to the time of supply rules
• European Sales List (ESL) reporting for supplies of cross-border services
• a new electronic refund procedure for VAT incurred in other EU Member States.

If you are unsure how these changes affect you or your business please do get in touch. Please contact Peter Hogan at Darlington, Nicola Bellerby at Durham or Terry Doyle at York.

Internet link:

HM Revenue & Customs (HMRC) Cross-Border Changes

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