David Wilson sets out some key tax issues for advisers to consider this month.
VAT ‘anomalies’
The proposed Budget measures concerning ‘VAT anomalies’ are open to consultation until 18 May 2012. Assuming there are no material changes suppliers and recipients will have to ensure correct VAT compliance of supplies from 1 October 2012 when the measures will take effect and systems changes will need to be considered now. Specifically:
Catering/sports drinks: If they haven’t already done so retailers will need to programme electronic tills to accommodate zero-rated and standard rated supplies. Businesses using VAT retail schemes will also have to ensure that the method accurately reflects the mixed VAT liability of sales.
Self storage: Suppliers need to be aware of differing VAT liabilities to...
