Indirect tax deadlines

VAT fuel scale charges 

Deadline for action: 1 May 2018

Issue: New VAT fuel scale charges apply to ‘private use’ fuel provided by businesses from the start of the next prescribed VAT accounting period beginning on or after 1 May 2018. By using the VAT fuel scale charge, a business can recover all the VAT charged on road fuel without having to split mileage between employees’ business and private use.

Action: Businesses must use the new scales from the start of the next prescribed VAT accounting period beginning on or after 1 May 2018. The updated valuation tables and accompanying notes set out the new scale charges and the VAT applicable thereon on an annual, quarterly and monthly basis.

Changes to the VAT exemption for cost sharing groups 

Deadline for action: 31 May 2018

Issue: HMRC has announced a change in policy on how the VAT cost-sharing exemption (CSE) is applied in the UK. The change in policy - see RCB 3/2018 and VAT Information Sheet 02/18 - is effective immediately, albeit there is a transitional period, to 31 May 2018 for cost sharing groups that have applied HMRC’s previous published guidance.

Action: Going forward, only organisations engaged in ‘relevant exempt’ and non-businesses activities fall within the scope of the CSE. Consequently, activities relating to land and property (excluding housing associations – at least for the moment), insurance, betting and gaming, and finance are now excluded and organisations in these non-qualifying sectors must stop applying the CSE by 31 May 2018, and undertake an apportionment for supplies which straddle this deadline. The CSE will be restricted to UK members only and will not be permitted where an uplift has been charged on transactions for transfer pricing purposes.

Fulfilment house due diligence scheme 

Deadline for action: 30 June 2018

Issue: Businesses that store goods in the UK for sellers established outside the EU may need to apply for registration under the fulfilment house due diligence scheme (FHDDS). The FHDDS applies to businesses that store goods that: were imported from a country outside the EU; are owned by, or stored on behalf of, someone established outside the EU; and, are being offered for sale and haven’t previously been sold in the UK. Businesses that only store goods that they own or that are not imported from outside the EU are not required to register, nor are transport businesses that need to store goods temporarily as part of their service.

Action: To avoid penalties, fulfilment businesses in existence before 1 April 2018 must register for the FHDDS by 30 June 2018. Those that started trading between 1 April 2018 and 30 June 2018 must register by 30 September 2018.

For more information please get in touch with Ian Carpenter, or your usual RSM contact.