Nigel Harris highlights some of the problems that can occur with cross-border VAT issues when filing online.
The standardisation of the VAT treatment of cross-border business-to-business supplies of services from 1 January 2010 has thrown up some misunderstandings among businesses and their advisers, including some accounting software providers.
Generally, such supplies are treated as being made in the customer's country, and are therefore outside of the scope of UK VAT. There are now only limited exceptions to this rule, for example:
- Land-related services
- Passenger transport
- Entry to events
- Restaurant services and catering
- Short-term hire of a means of transport.
In theory such supplies do not belong on the supplier's UK VAT return, b...