HMRC has published an article summarising how changes to the Cross-border VAT rules announced at Budget will impact on business and provides links to initial guidance on how HMRC expects these to be implemented in the UK, highlighting those areas where uncertainty remains. This guidance will be updated as outstanding issues are resolved.
To comply with the new rules, businesses will need to make fundamental changes to their current VAT accounting and reporting processes in order to be ready for 1 January 2010.
Who will be affected by the changes?
- 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.
For full details see here