Many businesses are unaware of some changes to EU law that came into effect on 1 January 2020. They apply in the UK until the transitional period covering the UK’s departure from the EU comes to an end on 31 December 2020. Therefore, it is important that businesses should familiarise themselves with the new rules.
Two of the clearest changes are that:
- A sale cannot be zero-rated as an intra-community supply if it is not declared on an EC Sales List; and
- A sale cannot be zero-rated as an intra-community supply if it does not contain a statement of the customer’s VAT registration number issued by another EU country.
However, it is the impact of the new rules governing chain transaction that seem to present the most commonly overlooked risk. We have produced a blog, with illustrations, which covers the change and the potential impact this will have on businesses which can be read in full here.
If you would like to discuss the issues highlighted in this document please contact Dean Carey on firstname.lastname@example.org .
Dean Carey CTA is a partner with Constable VAT and has been working in this field for more than 30 years. He started his career with HMRC before moving into practice. He is a member of the ACCA Tax forum and represents the ACCA on the Joint VAT Consultative Committee, the most senior forum for representatives of industry and practice to discuss policy matters with HMRC.