A number of changes to the VAT invoicing requirements will take effect on 1 October 2007, necessitating modifications to the format and content of invoices issued on and after that date.
From 1 October, VAT invoices must:
- Be uniquely and sequentially numbered;
- Bear a legend indicating if a supply falls within a margin scheme e.g. the second-hand goods margin scheme;
- Make reference to the grounds on which a supply is being treated as zero-rated or exempt from VAT, or is subject to the reverse charge mechanism, when goods or services are being supplied to other EU countries.
Businesses will also be required to issue a VAT invoice for all cross-border business-to-business exempt supplies of services.
The changes will affect most businesses, but particularly those:
- Selling second-hand goods, antiques, works of art etc and using the margin scheme;
- In the travel industry who operate within the Tour Operators Margin Scheme (“TOMS”) and making supplies to other business customers;
- Making supplies of goods and services to other EU countries;
- Making supplies of goods or services where the customer accounts for VAT e.g. electronic goods and mobile telephones.
We understand that HM Revenue & Customs will apply a “light-touch” to charging penalties for infringement of the requirements in the first year, but it is essential that you consider whether your invoicing system should be updated to conform with this change from 1 October.
Vantis' VAT team would be very happy to provide guidance and to work with you to update your systems and templates. To discuss this further, please complete and submit the online form below.