VAT

 

 

Low value supplies

 

This relief allows goods imported by post from non EU countries to be relived from VAT where their value is less than £18.00. the government has announced a token reduction in this amount to £15.00 and will consult with the EU Commission to see if it can be further limited in the 2012 budget.

 

 

Registration limits

 

From 1 April 2011 the VAT registration limit will rise from £70,000 to £73,000. The deregistration limit will increase from £68,000 to £71,000

 

Fuel scale charges

 

Fuel scale changes will be revalorised with effect from 1 May 2011.

 

 

Diplomatic privilege

 

The Government is in the process of gradually replacing all extra statutory concessions with legislation. This will take place for certain reliefs given to diplomatic missions, international bodies and visiting forces. A relief will be introduced for European Research Infrastructure Consortia.

 

 

Groups

 

As previously announced, the Government will legislate to ensure continued application of the relief given in the current VAT extra statutory concession 3.2.2 that ensures that groups and branches are treated equally when purchasing services from third parties.

 

 

Public Bodies

 

UK law will be amended to bring it in line with EU law relating to the treatment of public bodies when carrying out statutory duties and when in competition with the private sector.

 

 

Imported vehicles

 

A new online notification will be introduced for road vehicles brought into the UK from 2013. This joint initiative between HMRC and DVLA is designed to combat fraud.

 

 

Cost Sharing

 

The Government will continue to consult on implementing the VAT exemption for cost sharing by exempt bodies included in European VAT law.

 

 

Online registration and filing

 

The Government will begin consultations with the aim of making electronic VAT returns compulsory for all businesses from 1 April 2012.

 

With effect from 1 August 2012 VAT registration, deregistration and notifying HMRC of variations to business details will have to be undertaken online.

 

 

Academies

 

As previously announced, the Government will proceed with a VAT refund for Academy Schools (Free Schools) with effect from 1 April 2011. This will replace a system of central estimated VAT grants from the Department of Education.