Budget 2017 - VAT
There was a lot of talk about VAT in the run up to the Autumn Statement. Now that the dust has settled let's have a look at what has actually changed?
VAT Turnover Thresholds
One obvious banana skin avoided. No change to the annual turnover thresholds for 2 years. The question as to whether the current VAT threshold inhibits business growth beyond a certain level will be reviewed in the new year.
As such the registration threshold remains at £85,000; and deregistration threshold remains at £83,000.
Full details here
Brexit - VAT on imports - Deferred Payment Scheme
The government has provided assurances that importers will be able to benefit from a deferred accounting scheme similar to that which is currently permitted under EU rules.
Vouchers - VAT Accounting Simplification
One of a series of official government responses to be published on 1 December, the finance bill will introduce legislation to take effect from 2019 per the time of supply and valuation of certain types of voucher.
Online Payments - Real Time VAT Accounting
Following on from the announcement last Spring, the government will, on 1 December, publish trade sector responses to the proposals outlined per real time VAT payments.
A full consultation will be launched in 2018.
VAT Fraud - Provision of labour in the construction industry
On 1 December the government will publish the responses to the consultation it announced in last year's budget. Draft legislation will be published in due course for a reverse charge mechanism which will make pass tax accounting responsibilities on 'caught' transactions to the purchaser rather than the supplier.
The proposed reverse charge rules will come into effect in October 2019.
Online Market Places - Joint and Several Liability
A further extension of the reverse charge rules to combat Missing Trader type attacks on the tax system.
The government will also legislate in ‘Finance Bill 2017-18’ to require online marketplaces to ensure that VAT numbers displayed for third party sellers on their websites are valid. They will also be required to display a valid VAT number when they are provided with one by a third party seller operating on their platform. These requirements will be supported by a regulatory penalty
Not entirely sure how this will work in practice - full details can be found here.