When do the rules change for VAT refunds?

HomeWhen do the rules change for VAT refunds?
When do the rules change for VAT refunds?

The VAT rules are being tightened up from 1 September 2019 to stop a business making a price reduction to gain a VAT advantage without refunding customers, writes Neil Warren. VAT in the UK is now 46 years old but there are still some basic flaws in our VAT system that occasionally need sorting out with a change in the law.

Q. When is the last VAT quarter of the year?

Assume I have year – end accounts made up until the 30th of April 2018. The last vat quarter which fits the financial year is February- April. Take all the transaction in the vat control account from February to April and compare it to the last return, noting any differences and do this accordingly for each return?

Q. How is Value Added Tax ( VAT ) levied?

Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. VAT is a form of indirect tax and is levied in more than 180 countries around the world. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government.

Q. When is the recovery of costs subject to VAT?

Where the consultant incurs costs on behalf of the client, such as the payment of an application fee or a license fee, then such fees are paid in the capacity as agent for and on behalf of the client. The recovery of the costs in these circumstances will not be subject to VAT in the hands of the consultant.

Q. When do I need to submit quarterly VAT return?

Quarterly VAT return dates are due for submission 1 month and 7 days after the of a VAT quarter. For example, a VAT return for the quarter-end June 2019 would be due 7 August 2019. Monthly VAT return dates are also due for submission 1 month and 7 days after the of a VAT month.

Q. How to account for VAT on cash accounting at year end?

I.e look at the trade debtors and factor in the vat that has not been paid to HMRC yet. Someone has just told me you do because it is still technically due to HMRC – but surely it is only due to HMRC once the amount has been paid/received?

Q. How can I change the date of my VAT return?

A VAT return date cannot be changed once the return has been issued online. All changes apply to future returns. You can change a VAT quarter date by logging into your HMRC Government Gateway Account. Once logged in you need to select the option “Your Business Details” from the dashboard.

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