If you refund the payment, then you can reclaim any VAT you have accounted for in your next return. But, sometimes the law says that the detailed rules on a particular matter will be set out in a notice or leaflet published by HMRC rather than in a Statutory Instrument. HMRC will publicise the change, but if you’re in any doubt about the tax liability of your supplies or the date of the change, you should call the VAT general enquiries helpline. Where the goods have been supplied to a VAT-registered business in an EU member state, you will lose your entitlement to zero rate those transactions. You can find more information about registration, the relevant time limits and penalties for failure to notify in the factsheet Compliance checks: penalties for failure to notify. Do I have to use my phone every time I weigh myself? VAT Refund Scheme for charities (VAT Notice 1001) gives more information on a VAT refund scheme in relation to the non-business activities of palliative care charities, air ambulance charities, search and rescue charities and medical courier charities. If HMRC (or, following an appeal, an independent tribunal (see section 28)) agrees that there’s a reasonable excuse for your late registration or misdeclaration, you will not be liable to a penalty. If there’s no consideration for the supply, VAT is due on the cost of the supply. For general queries call the VAT general enquiries helpline. Invoicing arrangement for supplies made by or through agents, 24. The quality of the fuselage mouldings at Vario have a very good reputation. But, you must not issue a credit note if you’re using a VAT MOSS return to make your declarations and payments on business to consumer digital services. VAT is not due on certain gifts of goods (see paragraph 8.9.3). the removal of goods to Northern Ireland from an EU member state, in the member state from which the goods were removed, calculate the tax that is due in the normal way, need to work out the tax value of each supply in order, the packaging is more than is normal and necessary, you make an additional charge with a supply of goods for their container, to make sure that it is safely returned - and the charge is to be refunded on its safe return, this additional charge is not subject to VAT - but, if the charge has been raised to cover the loan, hire or use of the container, then this charge would be subject to VAT at the standard rate, make an arrangement to deliver or post them for an extra charge, the extra charge is for the supply of a separate delivery service, the charge made to you by Royal Mail may be exempt, but your charge to your customer is taxable even if it’s exactly equal to the charge made to you by Royal Mail, the terms of your agreement with your customer for the supply of the goods require you to deliver or post them to the customer. Buildings and construction (VAT Notice 708) explains when the sale or long lease of dwellings, certain residential buildings (such as care homes) and certain buildings used by charities is zero-rated. If you disagree with HMRC’s decision about VAT, 29. You may also be required to account for VAT under the ‘reverse charge’ procedure if you: For more information see Place of supply of services (VAT Notice 741A). For information on the zero rating of intermediary services see Place of supply of services (VAT Notice 741A). You may also find the following VAT notices useful, Land and property (VAT Notice 742) this also covers parking facilities and How VAT applies to taxis and private hire cars (VAT Notice 700/25). Examples of the type of services affected are: Not affected are continuous supplies of services, where you should normally apportion input tax between business and private or non-business use. This is a list of standard abbreviations for statutory references. Guidance about credits and debts has been updated. HMRC will not make any repayment where credit or debit notes do not meet the conditions at paragraph 18.2.3. If you do not meet the terms of that approval at any time, you must inform the VAT Registration Service. Electronic invoicing can take a variety of forms. This is the tax value of the standard-rated supply, excluding VAT. The solicitor cannot treat the search fee as a disbursement for VAT purposes. The use of a concession may be restricted, for example, if it’s used for the purpose of tax avoidance (see paragraph 2.3). cannot use the rules set out in this section to work out whether you have to account for any tax on a supply which spans your date of registration. VAT Notice 708: buildings and construction explains when: VAT Notice 701/7: VAT reliefs for disabled and older people explains that under certain circumstances, goods that are specifically designed to be used by a disabled person, or services specifically aimed at assisting a disabled person, may be zero-rated when supplied to a disabled person for their personal use. Hobbylinc carries 20 1/700 scale airplanes at discounts up to 45%. HMRC may also take County Court Proceedings or insolvency proceedings. You’re no longer regarded as making a separate supply of your own services to your principal. $10.80 Notify Availability. This applies even if the only supplies you make in the UK are exempt. For more information about these services see Place of supply of services (VAT Notice 741A). Where HMRC notifies you of a decision relating to your VAT, and you disagree, you may be able to challenge the decision. The VAT Written Enquiries Team does not provide rulings or opinions. The tax value of a supply depends on what you are given in exchange for the supply. This tax can be reclaimed as input tax subject to the normal rules. To spread the flow of returns evenly over the year, you will have been allocated to one of 3 groups of tax periods when you were registered. When a VAT rate or liability is changed, it may have to be introduced at short notice. A VAT invoice must not be issued for goods supplied under a second-hand scheme. A registered person supplies standard-rated services to a client for a basic fee of £80. Following payment you must ensure you have only recovered the VAT actually paid’. Your letter should ask for HMRC’s agreement to the submission of estimated figures for the return in question and set out when you intend to correct this. scale search light 600/700 size. But, if you ask for approval to use estimated figures once the due date is passed, HMRC will consider your request but it will not affect any default which has already been recorded. You will find detailed guidance on these in other, more specialised notices. Women’s sanitary products (VAT Notice 701/18) explains which sanitary products can be supplied at the reduced rate. Some supplies of services to overseas customers are zero-rated, but many are standard-rated. It also gives information about various services provided by site operators and mooring owners. A VAT-registered person supplies standard-rated goods or services for £100 plus VAT to another VAT-registered person. The basic tax point is overridden by the issue of a VAT invoice as set out in paragraph 14.2.2. The supplier accounts to HMRC for £20.00 output tax. As long as those making the grants or donations receive no direct benefit in return, this income is not the consideration for any supply and is outside the scope of VAT. Output tax is the VAT that’s due on your taxable supplies. If you’re a buying agent and the supply you’re arranging from the third party to your principal is taxable, your supply of services to your principal in arranging that supply is standard-rated. This scale calculator is a free tool to calculate different scale conversions common to military modelling. Officers aim to carry out their duties with as little inconvenience to you as possible. You make a standard-rated supply and a zero-rated supply and you charge an inclusive price of £144. Supplies made outside the UK are outside the scope of UK VAT. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. If the VAT credits you receive from your suppliers exceed the VAT you were charged on your purchases in any period, you will have a minus figure to enter in the input tax box (box 4) of your VAT Return. If the same VAT invoice is used, then the amount charged for the goods/services must be shown separately from the amount charged as commission. A multiple supply is different from a single composite supply of goods or services, to which a single rate of tax applies. The arrangements in this paragraph apply if auctioneers offer goods for sale as an agent for the seller. The information on this subject is in 2 sections. If the consideration for the supplies is not wholly in money, you must account for VAT as explained in paragraph 7.4. The standard tax period is 3 months. If you buy goods or services in other countries, you may have to pay VAT there. For more information on time limits and how to correct errors see How to correct VAT errors and make adjustments or claims (VAT Notice 700/45). We also use cookies set by other sites to help us deliver content from their services. But this will depend on the evidence held to show that the supply or transaction occurred and that the supply has been made to the person claiming the input tax. The corporate body must sign an approval letter before becoming so registered. (f) amount of VAT due on imports not subject to PVA. These include: Tax avoidance is the use of contrived arrangements or structures to achieve a tax advantage - an increase in tax recovery, a reduction in the tax due or a tax deferral - contrary to the purpose and spirit of the legislation. But, your use of goods is treated as a taxable self-supply if you: When goods that belong to your business are put to a private use outside the business, you make a taxable supply. It includes standards of service which specifically relate to HMRC’s administration of: Your co-operation in all aspects of the tax collection process is appreciated. Where the phone package allows the business to make a certain quantity of calls for a fixed monthly payment and there’s no separate standing charge, then it must apportion the VAT on the total charge for the package. If this procedure reduces the liability to tax of a supply for which a VAT invoice has already been issued at a higher rate, you must issue a credit note in accordance with paragraph 30.7.5. You can also cancel your registration voluntarily if you’re no longer required to be registered. This VAT can be recovered as input tax on the same VAT Return, subject to the normal rules for reclaiming input tax. If the taxable turnover from these activities is over the registration limits, the body should be registered for VAT. The agent must issue VAT invoices to the principal both for the supply arranged and for the supply of agent’s services. For example: On the other hand, some people who normally trade as principals, such as solicitors and architects, may occasionally arrange supplies as agents for their clients. your customer. But, if you’re arranging supplies of second-hand goods, works of art, antiques or collectors’ items, then you may be able to use the special accounting scheme for auctioneers, allowing you to calculate the VAT due on a margin basis. If you are not using PVA you must pay VAT when you import the goods or, if you or your agent is approved for duty deferment, you can defer payment with any duty. You may be able to zero rate the supply if you make arrangements for: As an agent, you may sometimes take a minor role in a transaction, and simply introduce your principal to potential customers or suppliers (third parties). Cable cars carrying 10 passengers or more are already zero-rated as passenger vehicles. The supply by the airline is a supply to the consultant, not to the client. You do not need to issue VAT invoices for supplies to customers who are not VAT registered. If the private use is temporary, the supply is one of services. HMRC will encourage you to co-operate and produce evidence, and may reduce the penalty to take account of the extent of your co-operation with the investigation. Most supplies relating to burial or cremation are exempt, but there are important exceptions. may treat the search fee as a disbursement and also outside the scope of VAT. If a taxable person dies, or becomes bankrupt or incapacitated (or a company goes into liquidation or receivership), and the business run by that person is then carried on by a personal representative, HMRC will allow that personal representative to be treated as the same taxable person. This section explains what to do when there’s a change in the rate of VAT (see paragraph 3.7). For services the countable element might be, for example: If the supply cannot be broken down into countable elements, then the total tax exclusive price will be the unit price. The association must account for tax on the goods or services at the rate in force at the tax point. But, you may use a retailers’ VAT invoice if both of the following conditions exist: If your business is based in Northern Ireland your customer must not be from an EU member state We are your floor scale specialist! But, if payment is accepted in instalments, or separate invoices are issued, the association should follow the procedure in paragraph 30.9. For more information see VAT Notice 701/1: charities. You should normally calculate this by reference to the price, excluding VAT, which a customer would have to pay for the supply if money was the only consideration. Section 30 gives guidance on the special procedures to follow. As a taxpayer, you have important rights and entitlements. For more information see Disagree with a tax decision. You must keep a record of all taxable supplies that you receive for your business. Don’t worry we won’t send you spam or share your email address with anyone. It does not include the Channel Islands or the Isle of Man. On occasion a VAT officer will call without an appointment. If you supply services, or new or second-hand goods, and receive other goods or services in full or part-payment, two separate supplies take place. If you have not received a return or you spoil or mislay one, do not be tempted to alter another VAT Return form or send your VAT declaration in another way. The place of supply of your auctioneer services depends on their nature, to whom they’re supplied, and where that person belongs. If the consideration for a supply is not in money (as in a barter transaction - see paragraph 8.7) or the consideration is partly in money and partly something else (as in part exchange), the tax value of the supply is the monetary equivalent of the consideration (the open market value). If you buy goods or services for both business and private use, you must first decide on the percentage of business use. Your registration will have to be amended in the case of any changes in: You must notify the VAT Registration Service within 30 days of the changes. This will place the switch You can use this scheme if the annual value of your taxable supplies (excluding VAT) is not more than £1,350,000. These EC Sales Lists are used to control the taxation on supplies within the EU. A consideration is any form of payment in money or in kind, including anything which is itself a supply. If the discount is taken up within the specified time you may adjust the consideration and amount of VAT accounted for by issuing a credit note. If you change to this method from another method of accounting, you must exclude any VAT which you have already claimed on a previous return. But, if you’re using a VAT MOSS return to make your declarations and payments on business to consumer supplies of digital services, you can correct your return up to 3 years and 20 days after the end of the relevant period. The tax point for goods supplied on credit is worked out according to the general rules in paragraph 14.2. Now, the scale is for every one inch of model, it equals 700 inches on the real thing. If there are any outstanding tax liabilities, HMRC will offset them against the amount of your claim. These are known as Intrastat Supplementary Declarations. no VAT is due on the supply you have arranged, the supplier will issue a VAT invoice to you, and you may then reclaim the VAT as input tax subject to any partial exemption considerations (see, you will need to issue a VAT invoice for both supplies, importing goods on behalf of a non-UK principal, importation is decided by the customs rules as previously, and will not change, acquiring goods into Northern Ireland from a principal in an EU member state, the fee you charge for carrying out an MOT test may be treated as outside the scope of VAT.