HM Revenue & Customs has unveiled its proposals on reverse VAT charges in relation to carbon trading.
Due to escalating VAT fraud around carbon trading HMRC introduced a zero rate of VAT in July 2009 – while it awaited an EU-wide directive.
The taxman has now unveiled its proposed implementation of a reverse charge on VAT payments on carbon trading. At the same time the zero rate of VAT will be withdrawn.
From 1 November, subject to parliamentary process, it will be the responsiblity of the customer rather than supplier to inform HMRC of VAT payments on carbon emissions, purchased through the EU emissions trading scheme.
The EU-wide directive to provide a reverse option for all member states was adopted in March.
Freelancers and micro-businesses still need more information about the government’s plans to make tax digital
New dividend tax is an attack on small business owners and is acting against the best interests of the UK economy, warns Top 50 accountants, Bishop Fleming
The Treasury is consulting on how businesses remunerate their staff to assess whether companies are artificially using benefits in kind to avoid tax
HMRC is consulting on proposals to clarify the tax treatments of general and limited partnerships