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The UK will continue to apply the VAT reverse charge for mobile telephones, computer chips and emissions allowances in their current forms for another five years, HMRC have announced.
The news follows the introduction of the reverse charge mechanism in European Directive 2013/43/EU, which also has the effect of extending the period of validity of the UK reverse charge for carbon credits from 30 June 2015 to the end of 2018.
The UK will continue to apply the VAT reverse charge for mobile telephones, computer chips and emissions allowances in their current forms for another five years, HMRC have announced.
The news follows the introduction of the reverse charge mechanism in European Directive 2013/43/EU, which also has the effect of extending the period of validity of the UK reverse charge for carbon credits from 30 June 2015 to the end of 2018.
The reverse charge was implemented in the UK from 1 June 2007 to remove the opportunity for fraudsters to perpetrate missing trader intra-community (MTIC) fraud. The original derogation from the EU ran until 30 April 2009. It was renewed in 2009 and again in 2011.
A zero rate for emissions allowances was introduced on 31 July 2009 as an interim measure to halt MTIC fraud, pending agreement on a common EU-wide countermeasure.
A directive providing an option for all member states to introduce a reverse charge was adopted in March 2010, and the UK’s reverse charge for emission allowances was implemented with effect from 1 November 2010.
The EU legal base for the reverse charge for mobile telephones and chips has now been superseded by the reverse charge mechanism.
