Budget 2013

Summary of indirect tax changes with potential VAT implications

Registration

  • Threshold up from £77,000 to £79,000.

  • Deregistration threshold from £75,000 to £77,000.

Road fuel scale charges

  • New rates from 1 May 2013.

  • Don't forget if commercial vehicles have private use & fuel is not recharged (at least at cost) scale charges apply to these as well.

Advance notice of a change in the place of supply rules

  • This is to be announced in the 2014 finance bill.
  • It will be effective from 1 January 2015
  • It affects business-to-end user supplies of
    • Telecoms
    • Broadcasting and
    • Electronically supplied services.
  • The new place of supply will be where the customer is located.
  • On the face of it a supplier might have to register in every Member State in which he has a customer.
  • The intention is that a supplier can render a single return in his own Member State that accounts for the VAT due in each of the Member States.
  • There will be a consultation paper issued prior to the drafting of the 2014 finance bill. Stakeholders, especially smaller businesses, are encouraged to respond.