Registration and deregistration thresholds
From 1 April 2013 the VAT registration threshold will be increased from £77,000 to £79,000 and the deregistration threshold from £75,000 to £77,000.
Road fuel scale charges
New road fuel scale charges to reflect current fuel prices will take effect from the first VAT period beginning on or after 1 May 2013. As announced at Budget 2012, certain concessions will be brought into law, a concession relating to partially exempt businesses will be withdrawn and the annual revaluation process will be simplified and taken out of the Budget.
As announced at Budget 2012, the Government will include measures in the Finance Bill to withdraw charitable buildings from the scope of the VAT reduced rate for the supply and installation of energy-saving materials, with effect from 1 August 2013.
Changes to the place of supply rules and introduction of the Mini One Stop Shop (“MOSS”)
Measures will be included in Finance Bill 2014 to change the place of supply of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services to the member state in which the consumer is located, with effect from 1 January 2015.
To support these changes, a Mini One Stop Shop (“MOSS”) option will be introduced from the same date, giving businesses the option of registering in just the UK and accounting for VAT due in other member states using a single return.
Changes to zero-rating of exports from the UK
Legislation will be introduced in Autumn 2013 to extend zero-rating to sales of goods to businesses that are registered for VAT but not established in the UK, where those businesses export the goods to a non-EU destination. Current UK law applies a positive VAT rate to such transactions, and is not compatible with EU law.
VAT treatment of refunds made by manufacturers
After a period of consultation, legislation will be introduced in Finance Bill 2014 to allow manufacturers to reduce their VAT payments to take account of refunds they make directly to final consumers. These could be refunds made as a result of faulty or damaged products or customer dissatisfaction. The Government will consult to gain a better understanding of industry practices to support the design of the legislation.
Review of the VAT Retail Export Scheme (tax free shopping)
There will be consultation on options for re-designing the Retail Export Scheme to make it easier to use and understand, to reduce the scope for error, and to improve compliance and protect revenue.
Extension of the education exemption to for-profit providers of higher education
Following the earlier consultation period, the Government will consider possible changes to the exemption for the provision of further education and will consult on these later in the year.
Withdrawal of the exemption for business supplies of research between eligible bodies
As previously announced, subject to the outcome of consultation which ended on 14 March, secondary legislation withdrawing the exemption for supplies of research between eligible bodies will be introduced with effect from 1 August 2013.