Please make sure everyone responsible for VAT in your business reads this newsletter.

Online Tax Registration Service Includes Vat from October 2012

From 31 October 2012 businesses can register for VAT using the HM Revenue & Customs (HMRC) online tax registration service. Businesses that do this will be automatically signed up for the VAT Online service so they can file returns online.

Agents can use the service to register a client for VAT but in these circumstances, to ensure online security, neither the business nor the agent is automatically signed up for the online service.

The new VAT registration service allows the majority of businesses, or their agents, to:

• register a business for VAT
• attach necessary documents, for example, when applying for Group Registration (forms VAT50 and VAT51) or Notification of an option to tax (form VAT1614A)
• apply for the Annual Accounting Scheme or Flat Rate Scheme
• view and print the VAT certificate

Once registered for VAT and signed up for the VAT Online service, businesses can use the service to make changes to their business details, for example, trading/business name, Principal Place of Business address and phone number. Businesses can also deregister for VAT online.

Agents will also be able to make changes to some of their clients’ VAT details (for example, change the business name) but for security reasons an agent cannot change the principal place of business or bank details on behalf of a client.

New Online Service – Business Tax Dashboard

HMRC's Business Tax Dashboard is an online service aimed at smaller businesses. You must have enrolled to use either HMRC's Corporation Tax or Self Assessment online service before you can set up a dashboard. You can use your dashboard to see the tax position for your business across different business taxes. It brings together information from your HMRC online services.

The information you can view includes VAT and PAYE for employers, if you have set up your business for these online services.

For more information go to Setting up and using a Business Tax Dashboard.

Tackling VAT Evasion on Road Vehicles Brought Into the UK

Currently, anyone bringing a vehicle into the country for permanent use on UK roads notifies HMRC using a variety of paper forms and pays any VAT due after registration of the road vehicle by the Driver and Vehicle Licensing Agency (DVLA).

This manual paper-based system is an inefficient way to collect VAT and rule-breakers are exploiting it to understate the amount of VAT due or evade payment altogether.

To combat this fraud, the Government announced at Budget 2011 a joint HMRC-DVLA initiative – a new online notification system called Notification of Vehicle Arrivals (NOVA).

From 15 April 2013, there will be a legal obligation to make a notification to HMRC within 14 days of a vehicle being brought into the UK. When HMRC confirm your notification has been processed you will be able to register (and license) your vehicle with the DVLA.

Please note that, from 15 April 2013, forms VAT414, VAT415 and C&E389 will be replaced by NOVA and forms C&E386 and C&E388 will no longer be issued by HMRC or required by the DVLA. However, a new paper form will be available for those who can't (or choose not to) use the online service.

Those covered by DVLA's Automated First Registration and Licensing (AFRaL) system will not be affected by this change.

More information about NOVA will be made available on our website and GOV.UK in due course.

For more information about VAT and bringing vehicles into the UK, go to Importing vehicles into the UK on the GOV.UK website.

Machine Games Duty

Machine Games Duty (MGD) is a new duty on the net takings from ‘machine games’ (games played on machines for a cash prize greater than the cost of play), being introduced on 1 February 2013. From that date, takings from dutiable machine games will become exempt from VAT. However, machine operators are potentially liable to become partly exempt ahead of 1 February, meaning they may have to restrict the amount of input tax claimed before then. See Notice 706 Partial exemption.

The Amusement Machine Licence Duty (AMLD) regime comes to an end on 31 January 2013. Registration opened for MGD on 1 November 2012.

For more information about MGD and VAT implications for this new duty, go to Machine Games Duty.

The Voluntary Scheme for Adapted Motor Vehicles and Boats

The new voluntary scheme for adapted motor vehicles and boats announced in Budget 2012 is now live. The scheme, directed at car dealerships and boat suppliers, aims to help HMRC build a better picture of the overall use of the zero-rated relief for wheelchair users.

If you are a car dealership or boat supplier we would be very grateful for your assistance in our data gathering. All you need to do is complete a survey about any zero-rated motor vehicle and boat sales you may make.

Full details on the voluntary scheme and access to the survey forms can be found on our website, go to www.hmrc.gov.uk and enter The Voluntary Scheme in the Search box.

Please note that our published guidance in VAT Notice 701/59 Motor vehicles for disabled people has now been replaced with new guidance:

• VAT1615 About purchasing zero-rated adapted vehicles (Guidance for customers)
• VAT1616 About purchasing zero-rated adapted vehicles (Guidance for suppliers)

For More Advice About VAT Online

Go to Online VAT Returns.

New and Revised VAT Notices

700/1 Should I be registered for VAT?

700/45 How to correct errors and make adjustments or claims

700/46 Agricultural Flat Rate Scheme

700/52 Notice of Requirement to give security to HM Revenue & Customs

700/56 Insolvency

702/8 Fiscal warehousing

702/9 VAT: Imports Customs Procedures with economic impact and end-use relief

702/10 VAT: Tax warehousing

723A Refunds of VAT in the European Community for EC and non-EC businesses

725 The single market

728 New means of transport

733 Flat Rate Scheme for small businesses

New VAT Information Sheets and Revenue & Customs Briefs

Go to VAT news, Notices, forms and reference materials.

Your Rights and Obligations

Your Charter explains what you can expect from HMRC and what they expect from you.

We have a range of services for people with disabilities, including guidance in Braille, audio and large print. Most of our forms are also available in large print.

Please contact us on any of our phone helplines if you need these services.

These notes are for guidance only and reflect the position at the time of writing. They do not affect any right of appeal.

HMRC Digital Service

November 2012

© Crown copyright 2012

Source: HMRC. www.hmrc.gov.uk. Copyright Acknowledged.