The government has laid regulations introducing a domestic reverse charge for supplies of gas and electricity certificates in the UK with effect from 14 June 2019.
The Value Added Tax (Section 55A) (Specified Services) Order, SI 2019/1015, specifies supplies of gas and electricity ‘renewable energy’ certificates as services to which the reverse charge will apply from 14 June. The reverse charge is being applied at short notice in response to a ‘serious and credible threat’ of MTIC fraud when these certificates are traded.
In Revenue and Customs Brief 4/2019: Domestic VAT reverse charge for businesses trading in renewable energy certificates, HMRC says it will take a ‘light touch’ approach to penalties in the first six months of operation of the reverse charge, where businesses have made reasonable efforts to comply with the new rules. See bit.ly/2WT8SxG.
The government has laid regulations introducing a domestic reverse charge for supplies of gas and electricity certificates in the UK with effect from 14 June 2019.
The Value Added Tax (Section 55A) (Specified Services) Order, SI 2019/1015, specifies supplies of gas and electricity ‘renewable energy’ certificates as services to which the reverse charge will apply from 14 June. The reverse charge is being applied at short notice in response to a ‘serious and credible threat’ of MTIC fraud when these certificates are traded.
In Revenue and Customs Brief 4/2019: Domestic VAT reverse charge for businesses trading in renewable energy certificates, HMRC says it will take a ‘light touch’ approach to penalties in the first six months of operation of the reverse charge, where businesses have made reasonable efforts to comply with the new rules. See bit.ly/2WT8SxG.
