Finance Bill 2012: Changes to VAT
The VAT changes announced by the government last week will probably not directly impact on most AccountingWEB members; however some businesses will be affected.
Nigel Harris takes a closer look at the Treasury summaries concerning VAT and provides some commentary on the most noteworthy sections.
2.55 VAT: low value consignment relief – As announced in Budget 2011, the Government is taking action to end the exploitation of low value consignment relief. This relief was reduced from £18 to £15 on 1 November 2011. On 9 November 2011 the Government announced that it would remove the relief completely from the Channel Islands from 1 April 2012.
“This was announced in the 2011 Budget. It removes the unfair VAT advantage enjoyed by mail order businesses based in the Channel Islands. Reducing the LVCR from £18 to £15 appears to be a largely symbolic move – for example, most orders for a single DVD or music CD are likely to remain below the limit.”
Continued...
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