VQOTW: POST BREXIT SUPPLIES OF DIGITAL SERVICES – VAT MOSS

I have a number of clients supplying various kinds of digital /electronically supplied services to businesses and consumers in the EU. Their activities include the supply of downloadable software and Apps, and access to information, photo or videos held online. They currently use the VAT Mini One Stop Shop (VAT MOSS) via their UK VAT registration, to account for VAT on the sales to EU Consumers. How is this going to change after we leave the EU on 1st January 2021?

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VQOTW: TEMPORARY REDUCED RATING FOR THE HIRE OF BOATS AND MOTORHOMES

My client’s limited company owns various holiday cottages and they are applying the temporary reduced rate to this income from 15th July 2020 to 12th January 2021. They also own several narrow boats, camper vans and motorhomes which have become very popular this year with more families wanting to holiday in the UK in their own personal space. They have read various articles online and they are a little confused as to whether the reduced rate can be applied to the rental income received from narrow boats, camper vans and motorhomes?

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VQOTW: VAT CHANGE OF RATE AND IMPACT ON VOUCHERS

My client operates a luxury hotel in the UK. They have recently reopened and will now recommence selling face value gift vouchers. The holder can redeem their vouchers against room reservations, dining at the restaurant/bar and when using the leisure and spa facilities. The restaurant does not offer a takeaway service. Historically the client has always charged VAT at the standard rate on all their supplies. Could you please clarify the impact of the temporary rate change on the issue of face value vouchers. When will the VAT be due and at which rate?

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VQOTW: Self supply car non qualifying use

My client is a limited company operating a self-drive car hire business. I understand that because the cars are intended to be used primarily for self-drive hire, the vehicles are excepted from the block on recovery of input tax, and my client has recovered VAT in full on the purchase of each car.

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Covid19 Update VAT rate change to 5%

Please find enclosed our guidelines for the Vat change today relating to the hospitality, attraction and accommodation supply sectors. Remember Supply is the main word. It is fairly clear cut for most businesses but become Grey for those on the fringes of these sectors. If you supply these industries, in most cases, nothing has changed.

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THE CAPITAL GOODS SCHEME FOR VAT

The VAT capital goods scheme affects input VAT recovery
relating to high-value capital assets. Input VAT is a tax incurred
on most purchases made by VAT-registered firms, and they can
usually reclaim it from HMRC in full.

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VQOTW: RECOVERY OF VAT INCURRED PRIOR TO VAT REGISTRATION

My client ran his decorating business for three years as a sole trader and is now going to incorporate. As a sole trader his turnover never quite reached the registration threshold but he will VAT register when he incorporates as a lot of his customers are now contractors. Will he be able to recover VAT on his limited company registration on the van, tools, and equipment he bought as a sole trader and will still use in the company?

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VQOTW: AMAZON SELLERS

My client is a recently retired police dog handler. He has decided to start up a business selling dog-training and pet accessories online through Amazon. Do you have some pointers for what we need to think about in terms of VAT compliance obligations?

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VQOTW: USE AND ENJOYMENT

We have been approached by a new client who is VAT registered, and their business activity is the hire of audio visual equipment. They are looking to invoice a Canadian music company for the hire of sound and lighting equipment.

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