Changes to UK VAT Reverse Charge procedure

HMRCHis Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes. have recently updated the domestic reverse chargeWhen the Reverse Charge (mechanism) is in effect, the recipient of goods or services assumes responsibility for reporting both the purchase and the supplier’s sale in their VAT return. procedure, specifically, the reverse charge sales list (RCSL).

Some VAT-registered businesses will be required to submit updated RCSL’s by Friday 20^th August 2020 or else be liable to penalties. Penalties are calculated daily for a maximum of 100 days at increasing rates. Penalties will also apply to errors and late submissions.

Submissions may be made via the Making Tax Digital for VAT Service.

This will affect all VAT-registered businesses that supply or purchase goods and services as listed in Section 3 of the notice, which may be found on the HMRC website linked below.

Source: HMRC