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How reverse charges payable by VAT groups should be valued
The law on how reverse charges payable by VAT groups should be valued was updated in FA 2012 to bring extra-statutory concession 3.2.2 “Group supplies using an overseas member” into law.
HMRC have written new guidance on the updated charges with assistance from business.
The new law operates in a specialised area of VAT so the new guidance will only be relevant to taxpayers that:
- are VAT groups;
- have group members that have overseas establishments;
- make charges to the UK from those overseas establishments;
- are partly exempt (make both exempt and taxable supplies).
HMRC guidance on how supplies should be valued for VAT is being updated will be incorporated into the valuation guidance when it is re-launched on the department's website.
The new information cannot be published separately while the process is underway, but a copy can be obtained via email.
