TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

New HMRC Guidance on Reverse Charges for VAT Groups

The law on how reverse charges payable by VAT groups should be valued was updated in Finance Act 2012 to bring a concession into law. HMRC has now written new guidance on the updated charges.

The new law operates in a specialised area of VAT so the new guidance will only be relevant to taxpayers that:

  1. are VAT groups;
  2. have group members that have overseas establishments;
  3. make charges to the UK from those overseas establishments; and
  4. are partly exempt (make both exempt and taxable supplies)

HMRC guidance on how supplies should be valued for VAT is currently being updated and the agreed new guidance will be incorporated into that valuation guidance when it is re-launched on the HMRC website. Whilst this process is ongoing the new guidance on reverse charges cannot be separately published. In the interim anyone in need of a copy of the new guidance can obtain one by contacting HMRC.