Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.
The penalties are not tax-geared, so the fact that the penalty exceeds the tax due will not, by itself, give you a defence.
You can certainly argue a 'reasonable excuse' defence if HMRC have failed to respond to calls. I am presuming you maintain a record of such calls?
I think 0%, but you will need 'chapter and verse' to reassure the contractor.
The issue is not ownership of the car. The reason the fuel scale charge is used is because the business pays for all fuel, and the car is used for business and private purposes.
Certainly not a MOSS supply.
But are you expecting it is a taxable B2C supply (which is most likely), or are you hoping it is exempt?
I agree with your conclusion about having to register in an EU MS.
Unless Mrs May's exit agreement provides for a UK registration to be valid.
Did they not take advice before carrying out the work?
Yes, they can make an argument. The Client's Accountant would usually do this.
So, will you make exempt or taxable supplies? If exempt, then you cannot register in any case.
A number of reasons:
- is it ethical?
- HMRC have to give permission to deregister unless you have ceased trading; and
- a self supply applies to assets on hand at deregistration, which might undo the original input tax claim.
Or, if your clients are in business, then just stay registered.
The answer to your question may be quite complex. There is more than one supply for VAT purposes, and an Accountant (or VAT specialist) will want to confirm the exact nature of the supplies, the evidence for removal and arrival of goods.
There are also questions about invoice wording, EC Sales Lists, perhaps tax points too.
So, quite a lot to deal with comprehensively within a f.o.c. forum.