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Invoicing requirements and online filing

As a reminder, we would like to advise you again of the new invoicing requirements that will affect all businesses who trade within the EU and the imminent requirement to file your VAT returns online.

Invoicing requirements
As we have mentioned in previous UHY publications, the new invoicing requirements have been in force for some time but under a ‘light touch’ regime. This, however, is set to change and the requirements will now be enforced more rigorously following the changes to VAT reporting procedures across the EU.

For sales of goods to business customers in other EU member states (B2B), in order to zero-rate the sale you must now quote the customer’s own VAT number or charge UK VAT.

For sales of services to business customers in other EU member states (B2B), most of these services will now be free of VAT (although there are several exceptions) but where the customer is VAT registered you must, once again, quote their own VAT number on your sales invoice.

VAT-free invoices for EU B2B cross-border goods or services must also contain a statement advising the customer that they are required to account for VAT through their own VAT returns. There is no set wording for this but we can advise on an acceptable phrase if required.

Online filing
From 1st April 2010, all businesses with a turnover exceeding £100,000 and all new VAT registrations are required to file VAT returns and EC Sales Lists and, additionally, pay any VAT due electronically. The only exception to this is for those who have a religious objection to using computers. The good news is that the seven-day extension for paying your VAT liability electronically will be continued and extended to include the filing of the VAT return itself. As an example, a VAT return for the quarter ending 30th April 2010 must be filed and paid electronically by 7th June 2010.

This means that your January, February or March VAT return, as the case may be, will be the last one you are able to file in hard-copy or pay by cheque. HMRC have already intimated that they will not accept any payments by cheque for VAT periods after March 2010 for those businesses required to file and pay electronically. We would recommend that you take immediate steps to set your business up for online filing if you have not already done so.