September 5th, 2017 / Insight posted in Articles, Newsletters

Weekly VAT Update – 5 September 2017

HMRC Notice 700 Update the General VAT Guide

HMRC has carried out a fairly extensive update of the General VAT Guide, involving 30 odd paragraphs. Some of the items are as follows:

Paragraph 8.17 is new and explains that the charge for single use carrier bags is VAT inclusive.

Paragraph 16.8 deals with the alternative evidence that HMRC will accept to allow input tax deduction, in the absence of a valid VAT invoice,. This includes a bank statement showing payment, evidence of due diligence on the supplier, contract with the supplier, and documents evidencing transport, storage or insurance of the goods.

Paragraph 17.7 on electronic invoicing has been updated to take account of technological developments

Paragraph 21.2 explains what evidence HMRC requires to approve the use of estimates in VAT returns

Paragraph 23.1 has been updated with respect to agents and includes a number of helpful examples.

Introduction of VAT in the Gulf states

Two states, Saudi and UAE, are well-advanced with the introduction of VAT from 1 January 2018, and at least one, possibly both, will be accepting VAT registrations this month. The registration limit will commence at 375,000 in both cases; Saudi Riyals and Dirhams respectively. There is speculation that the other four may defer the introduction by a year to 1 January 2019. For more information contact Adrian Houstoun.