Monthly Newsletter - December 2006

In this issue:

• Proposed reverse charge for mobile phone industry is postponed
  
• New VAT 1 form
  
• Pre-budget report
  
• Correct documentation for exports
  
• New specialists to the list...
  
• VAT Consultancy christmas donation

Proposed reverse charge for mobile phone industry is postponed

The proposed introduction of a reverse charge for businesses trading in mobile phones, computer chips and other similar goods has delayed until further notice due to some countries still not agreeing to it – HMRC are continuing their discussions with those EU countries whom have raised objections to the proposal.  HMRC have agreed to give at least 8 weeks notice before the introduction of any changes.

NEW VAT 1 form

A new VAT 1 form was introduced on the 1 December 2006.  The new form looks much clearer than the old and attempts to deal with TOGC, voluntary and compulsory registrations in a much clearer manner and now requires the date of birth of the signatory!  The new form may now be downloaded from HMRC’s website (under VAT, then click on forms).  HMRC will continue to accept the old forms until 31 March 2007.

Pre-budget Report

Gordon Brown has made his pre-budget speech in the House of Commons; the VAT issues raised were as follows:

1. Disclosure Regime – HMRC are to publish a consultation document regarding tackling non-compliance
2. MTIC Fraud  - negotiations are continuing with European Partners to introduce the reverse charge
3. Transfer of Going Concerns – a small change regarding who keeps the records after a TOGC takes place, the amended law will be that the seller will keep all the business records in all but a few cases.
4. Partial Exemption – changes to the agreement on special methods will be introduced on 1 April 2007, this will allow the faster approval of special methods. 

Correct documentation for exports

The recent Tribunal case House of Goodness Ltd is another reminder that the onus is on the supplier to keep primary and secondary documentation as evidence to show the goods leaving the UK.  Although these goods were ultimately deemed to not exist – the reminder is that HMRC will assiduously check for correct documentation where applicable.  In the light of MTIC Fraud, HMRC are becoming more critical in examining supporting documentation.  

New specialists to the list…

We have grown again and recently appointed Graham Miller and Peter Bradshaw to join our team.  Graham Miller has many years experience in both the insurance and finance sector and is based in our Crawley Office whilst Peter will be dealing with Global VAT Recovery and EU VAT Registrations.

These are areas requiring specific expertise and clients in these sectors are already benefiting from contacting them.

VAT Consultancy christmas donation

As in previous years, rather than send our clients individual Christmas cards, we have once again agreed to donate the equivalent amount to local charities. 

However, we would like to extend our warmest Christmas wishes to all our clients and readers.

For further information regarding any of these articles or any other VAT issue, please phone us on 01962 735350 or e-mail us at: vat@thevatconsultancy.com