August 13, 2009
Cross Border VAT changes 2010
Firstly the changes come into effect from
Secondly the changes apply to businesses supplying and receiving services from overseas businesses, businesses supplying goods to other EC countries and those businesses that want to reclaim VAT incurred in other EC country.
Thirdly the changes alter the Place of Supply rules.
- Most services provided to business customers will be treated as supplied in the country where the business customer is established. The business customer will account for VAT under the ‘reverse charge’ mechanism.
- Services provided to non-business customers will still be liable to VAT in the country of the supplier.
New EC Sales Listings for services and changes to ESLs for Goods
UK VAT registered businesses that supply services to EU businesses, where the supply is the customers country, will have to complete ESLs for each calendar quarter and submit these within 14 days for paper returns and 21 days for electronic returns.
UK VAT registered businesses that supply goods to other EU countries already submit ESLs. From
Refunds of VAT from other EU member states
A new electronic VAT refund process will be introduced across the EU for all claims submitted after
What must be done now?
Businesses need to consider whether they will be affected by the changes and what changes to their accounting systems will be required to implement these new rules from
If you require further information regarding any of the points above please do contact us.
Elysian Associates
August 2009
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