PracticePeople In PracticeIT – Software sellers want VAT euro guidance

IT - Software sellers want VAT euro guidance

Accounting software suppliers have vowed to stop work on euro-compliant VAT routines until they receive definitive tax guidance from Customs & Excise.

Around 40 members of the software trade body BASDA issued their warning to Customs officials at a meeting last Friday. John Moscrop, head of Customs’ EMU project team, acknowledged the suppliers’ concerns but made no undertaking to alter the ruling that companies which invoice in euros will still have to maintain records and file VAT returns in sterling.

So far, among suppliers in the UK, only Exchequer Software can handle this parallel currency requirement.

Peter Robertshaw, EMU roll-out manager for German supplier SAP, said the meeting was useful, ‘but didn’t go far enough – there are still some issues to sort out’. For example, Customs, which refused to comment, has yet to specify which exchange rates companies should use when converting euro invoices to sterling, he added.

‘Time is getting short before EMU. This isn’t the time for delay,’ said Robertshaw.

Kevin Carletti, senior manager of Ernst & Young’s financial services office, explained that companies which switched their accounting currency to euros could be at risk from exchange-rate fluctuations.

‘I can’t see Customs turning around tomorrow and saying you can account for VAT in euros,’ said Carletti. ‘If it receives VAT returns in euros, that shifts the exchange-rate risk and it might collect less tax. Customs will also have systems issues of its own coping with euros.’

FEE euro conference, page 10.

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor