Revenue Note for Guidance
This Part, which contains 7 Chapters, provides the rules relating to registration, invoicing and other documents, and returns and payments of VAT. It also contains rules on statements required by traders in respect of supplies of goods and services to other Member States of the EU, and provisions in relation to records that must be kept for VAT purposes.
Chapter 1 deals with the requirement to register that is placed on persons accountable for VAT (section 65). Chapter 2 covers the issue of invoices and other documents (sections 66 to 73). Invoicing rules are very important in VAT. The information given on invoices and credit notes normally establishes the VAT liability of the supplier and the entitlement of the customer to a VAT deduction. Accountable persons are legally obliged to issue and retain these documents. Registered persons normally account for VAT on the basis of invoices issued and sales made by them.
Chapter 3 opens with 2 sections on the time that tax is due on supplies of goods and services and on intra-Community acquisitions (sections 74 and 75). It also deals with returns and payments of tax (sections 76 to 79). Broadly, returns must be filed and tax paid by the 19th of the month following the taxable period in which the supply takes place. Other rules apply in certain situations.
Chapter 4 contains the provisions for traders who account for VAT on the basis of payments actually received, as opposed to invoices issued ( section 80).
Chapter 5 contains the expression of doubt provisions available to a taxpayer (section 81).
Chapter 6 covers recapitulative statements of intra-Community supplies of goods and services that must be submitted periodically by traders who do business across the EU (sections 82 and 83). Finally, Chapter 7 deals with the basic duty imposed on accountable persons to keep records of all business transactions that affect their VAT liability (sections 84 and 85).
This section provides for the registration by Revenue of persons liable for VAT and places an obligation on accountable persons to furnish certain particulars required in connection with registration.
Generally speaking, registration is effective from the beginning of the next taxable period of 2 months after the date on which the completed application is received, or earlier if the applicant and Revenue agree.
(1) Revenue is required to set up a register of persons who are, or who may become, accountable. The requirement to register accountable persons also extends to liquidators, receivers and other persons who dispose of goods or supply services that are deemed to be supplied by accountable persons under section 22(3) or section 28(4) or (5).
(2) Revenue is required to assign a number to each person registered for VAT.
(2A) Revenue may cancel a number which has been assigned where the person does not become or ceases to be an accountable person.
(3) There is an obligation on accountable persons to provide the necessary information for registration within 30 days after the day on which they become an accountable person.
(4) A person such as a receiver or liquidator who disposes of goods or supplies services forming part of the assets of an accountable person towards the satisfaction of a debt, or in the course of a company winding up, must, within 14 days of such disposal or such supply, apply for registration for the purpose of accounting for tax.
Note that Regulation 19 of the VAT Regulations 2010 deals with registration.
Relevant Date: Finance Act 2020