Commentary

V16.101 VAT Notes No 1 2013 Budget Supplement

Part V16 Forms and other HMRC material

V16.101 VAT Notes No 1 2013 Budget Supplement

V16.101 VAT Notes No 1 2013 Budget Supplement

This supplement gives details of the changes to VAT announced at Budget 2013. Information on each of the changes is available in HM Revenue & Customs' document, 'Overview of Tax Legislation and Rates'.

Increased registration and deregistration thresholds

The taxable turnover threshold, which determines whether a person must be registered for VAT, increased from £77,000 to £79,000, from 1 April 2013.

The taxable turnover threshold which determines whether a person may apply for deregistration increased from £75,000 to £77,000, from 1 April 2013.

The registration and deregistration limits for relevant acquisitions from other European Union (EU) member states also increased from £77,000 to £79,000 from 1 April 2013.

Exemption for supplies by for-profit providers of higher education

A consultation was carried out at the end of last year with a view to considering whether the exemption should be extended to cover supplies of university education made by for-profit providers. The responses from the consultation highlighted a number of issues and concerns with the options proposed and the Government has decided therefore to spend more time developing alternative options which may also include possible changes to the exemption for further education (a point that a large number of respondents made).

Once the alternative options have been developed, a further consultation on this matter will be undertaken later in the year with a view to possible legislation in a future finance bill.

Changes to the place of supply rules and introduction of the One Stop Shop

From 1 January 2015, supplies of telecommunications,

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