A Retiring Glance At Trade – Past, Present And Future
As my tenure at UK Trade & Investment draws to a close, it’s time for a little reflection…
1 December 2009
From 1 January 2010 new VAT rules will apply regarding the cross border supply of services.
From 1 January 2010 new VAT rules will apply regarding the cross border supply of services and it is essential that businesses assess how these rules may impact them to ensure they have systems in place to deal with the changes from the outset. The changes will affect:
· Businesses supplying services to overseas businesses.
· Businesses receiving services from overseas businesses.
· Businesses supplying goods to other EC countries.
· Businesses that want to reclaim VAT incurred in another EC country.
The new basic rule for the place of supply of services will tax business to business supplies of services at the place where the customer is established, rather than at the place where the supplier is established which is currently the case.
For business to consumer supplies of services, the general rule for the place of supply will continue to be the place where the supplier is established.
More detailed information on the changes can be obtained from the following fact sheet
Alternatively, please see HMRC’s website http://www.hmrc.gov.uk/VAT/cross-border-changes-2010.htm