Commentary

RCB/35/10 VAT—proposed reverse charge accounting for businesses trading in emissions allowances

Part V16 Forms and other HMRC material

RCB/35/10 VAT—proposed reverse charge accounting for businesses trading in emissions allowances

RCB/35/10 VAT—proposed reverse charge accounting for businesses trading in emissions allowances

Revenue & Customs Brief, Issue 35. 20 August 2010

Introduction

Budget Note 49 (24 March 2010) (BN/49/10, Division V16.3) announced the introduction of legislation for a reverse charge with effect from 1 November 2010.

The purpose of this Brief is to share the draft legislation and provide guidance on how the reverse charge for emissions allowances will operate.

Who needs to read this?

Business selling or purchasing emissions allowances in the UK.

Background

A zero rate for emissions allowances was introduced on 31 July 2009 as an interim measure to halt rapidly escalating MTIC fraud in this area, pending agreement on a common EU-wide countermeasure (Revenue & Customs Brief 46/09 (RCB/46/09, Division V16.3)). A Directive providing an option for all Member States to introduce a reverse charge was adopted in March 2010.

Timing and Scope of Implementation

With effect from 1 November 2010 (subject to

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