VAT Registration - delay in processing of registration applications
Customs have added an update to the section on their website on the processing
of registration applications, which acknowledges that they are currently taking
up to 8 weeks to process some applications for registrations. However, the update
does not offer anything tangible by way of assistance to businesses who find themselves
inconvenienced by these delays, apart from the statement below.
"What can I do if I need to invoice my customers?
If your registration number is delayed you should make use of the provisions available
for invoicing while the VAT number is being processed. You can find out how to do
this in paragraph 4.1 of Notice 700/1."
Basically, paragraph 4.1 of Notice 700/1 states "You can charge VAT before you
are registered but until you have a registration number you must not show VAT as
a separate item on any invoice you issue. You can change your prices to include
VAT and explain to any of you customers who are also registered that you will be
sending them VAT invoices later. Once you have your registration number you should
send the necessary invoices showing VAT within 30 days."
Submission of VAT returns
Businesses are reminded that, since the closure of all VAT enquiry counters
in September 2002, VAT returns can no longer be accepted at local offices.
VAT returns should be submitted either by post or electronically.
Intrastat - revised thresholds for 2004
From 01.01.04 the Intrastat Assimilation and Delivery Terms thresholds will
be revised. The Assimilation threshold will be reduced from £233,000 to £221,000
and the Delivery Terms threshold will be increased from £13.5million to £14million.
Any businesses trading with other EU Member States could be affected by these
thresholds. Please note that the Intrastat Assimilation threshold refers to the
values for both 'arrivals' and 'dispatches'.
Phone cards
Customs have published their views on the VAT treatment of phone cards supplied
to a UK distributor by an issuer in another Member State. If you or any of your
Clients require any further information on the above please contact us.
Customs civil evasion penalty
The Customs (Contravention of a Relevant Rule) Regulations, SI 2003/3113,
which have just been published, came into force on 23 December 2003. They prescribe
the breaches of customs rules that will give rise to the Customs civil evasion penalty
introduced by FA 2003. The penalty applies to less serious cases of evasion of customs
duties and import VAT, where prosecution would be disproportionate.
If you require further information please contact us on 0121 778 4299.
This newsletter is designed to keep readers abreast of
current developments. No liability is accepted for errors, omissions or opinions
it contains or for any reliance placed on this newsletter. This newsletter is intended
for general guidance only. No responsibility for loss occasioned to any person
acting or refraining from action as a result of any material in this publication
can be accepted by the authors or publishers. On any specific matter, reference
should be made to the appropriate advisor.
© Copyright 2004 VATease Ltd
