The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the penalties that could be imposed upon a person who breaches one of the following VAT provisions.
This section provides details of the various breaches of the VAT regulatory provisions that could result in the imposition of a penalty.
If a VAT registered business ceases to make or have the intention of making taxable supplies it is required to notify HMRC within 30 days of the relevant date. Failure to notify HMRC within the required deadline will be treated as a breach of the relevant conditions.
If a business is VAT registered in the UK, in ‘respect of supplies that would have been taxable had they been made in the UK’ fails to notify HMRC within 30 days that the business has either:
ceased to make or have the intention of making the specified supplies, or
has formed or made an intention to make taxable supplies in the UK
VATA 1994, Sch 1, paras 10, 12
The business is in breach of the relevant conditions.
If a UK VAT registered business with no establishment in the UK ceases to have any intention of making taxable supplies or ceases to make taxable supplies, and it fails to notify HMRC within 30 days of the relevant date, the businesses will have breached the relevant provision.
If a business established in another member states is registered in the UK in respect of distance sales made to UK customers and the business fails to notify HMRC within 30 days that the:
business has ceased to be liable to registration
business has ceased to be entitled to registration
business has ceased to have the intention which resulted in the request for registration
business has fulfilled the intention to make the option or supply which resulted in the request for registration, or
business’ option to treat relevant supplies as taking place outside another member state has ceased to have effect
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel
Migration of tax credits to universal creditNew claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
Close companies ― overviewMeaning of close companyThe tax rules for close companies are intended to address those companies that are closely controlled (ie by the owners and their families) and therefore could be used to manipulate the tax position of its activities and its investors. Therefore,