September 2007

VAT Change for Invoices

HMRC have issued guidance on changes to the rules regarding the information to be shown on invoices issued from 1 October 2007. Some of the changes are very minor and reflect current normal business practice. However some businesses will need to amend their current invoices to comply with the guidance.

The businesses most likely to be affected by the new requirements are those:

• using the margin scheme for second-hand goods, antiques, works of art, and collectors’ items

• involved in making travel related supplies that fall within the scope of the Tour Operators’ Margin Scheme

• involved in intra EU supplies of goods and services

• making supplies where the customer accounts for the VAT. This VAT treatment is sometimes known as a ‘reverse charge.’

Please do get in touch if you would like further clarification of how these changes will affect you.

Internet Link:

HMRC guidance