E-Commerce
As previously announced, the British Authorities have now confirmed they hold online platform jointly and severally liable for the UK VAT owed by resellers if they don’t meet their VAT requirements (see HMRC notice here). Some platforms such as Ebay have already announced their full cooperation with the local authorities in order to have sellers register for VAT purpose and pay UK VAT. After France, UK has set up the appropriate tools to tackle sellers not complying with (UK) VAT obligations.
Annual Accounting scheme
If you use the Annual Accounting Scheme, you only need to submit one online VAT Return per year. You pay your VAT during the year by making nine monthly or three quarterly interim payments towards your total annual VAT bill. Your interim payments are due at the end of months 1) 4 to 12 of your annual accounting year if you are making monthly payments and 2) 4, 7 and 10 of your annual accounting year, if you are making quarterly payments. Your online return, along with your balancing payment is due two months after the end of your annual accounting period.
Fee charged to exhibitors at antiques and collectors fairs
According to UK jurisdiction, pitch rentals at showground fairs are not VAT exempt on the grounds that they are simply either a 'license to occupy land' or the 'leasing or letting of immovable property'. HMRC successfully argued that the pitch leases - while often just a chalk mark in the ground - could not be seen in isolation from any add-on services such as advertising, catering, marshals, toilets and security that do attract a VAT charge. Exhibitors at British showground fairs must pay 20% on pitch rentals according to a recent British tribunal decision [Birmingham, First-Tier Tribunal, 12/02/2015].
Reverse charge for supplies of building and construction services scheme
As of 1st October 2019, a new domestic reverse charge mechanism will be applicable to B2B supplies of certain building and construction services in the UK. It will apply through the supply chain up to the point where the customer receiving the supply is no longer a business that makes an onward supply of the same construction services. The reverse charge will exclude businesses that supply such services to connected parties within a corporate group structure or with a common interest in land (e.g. landlord and tenant). In these circumstances, VAT will have to be charged in accordance to the usual rules.
Update: The introduction of the reverse charge for building and construction services has been delayed for a period of 12 months until October 01, 2020 (see our VAT news 06/2019)
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