V16.927 Changes to VAT invoicing with effect from October 2007
Information Sheet 10/07, July 2007
What is this Information Sheet about?
It explains some changes to current VAT invoicing regulations. These include a minor change to the numbering of invoices and new rules to clarify the VAT treatment when making margin scheme supplies, supplies to business customers in the UK when the customer accounts for the VAT, and supplies to business customers in other EU countries.
Who does this affect?
While the new regulations apply to the whole of the VAT population, for most this will not require changes to their current invoicing procedures. Those most likely to be affected are:
— Businesses using the margin scheme for second-hand goods, works of art, antiques and collectors items.
— Businesses involved in making travel related supplies that fall within the scope of the Tour Operators Margin Scheme.
— Businesses involved in intra EC supplies of goods and services.
— Businesses making supplies where the customer accounts for the VAT.
When do I have to change my invoicing?
The new law comes into force on 1 October 2007. However, as is common with such regulations, in the first year of the new requirements HMRC will issue penalties for non compliance with the new requirements only in exceptional cases.
Detail of changes
Why are changes being made to VAT invoicing?
The changes follow the commencement of formal infraction proceedings by the European Commission on the grounds that the UK had not fully implemented the VAT Directive. The government has now introduced regulatory