VAT place of supplier rule change

As you know, the rules on place of supply are changing from 1 January 2010 and among the changes the one with the biggest impact is likely to be the requirement to make EC Sales Lists in respect of all services supplied cross border where the reverse charge applies, which will be most supplies to business customers (the reverse charge means the supplier doesn’t charge VAT but the customer has to account for the VAT on the supply through their own VAT return; they will also claim the VAT in that return, subject to the normal rules).

From 1 April 2010 all businesses with a turnover in excess of £100k will have to file returns electronically; as this is not so much higher than the registration threshold it is reasonable to describe this as most VAT-registered persons.

The link between these two is new filing requirements, or they could be dealt with separately.

Terry Dockley, VAT Director, James Cowper LLP, Tel 01635 35255 or email: tdockley@jamescowper.co.uk