Traders Should Note Changes to VAT Invoicing Regulations

Leading Stafford accountancy firm Dean Statham is advising county traders to brush up on recent changes made by H M Revenue and Customs to current VAT invoicing regulations.

Peter Hawley, the firm’s VAT specialist, says, ‘Currently all VAT invoices need to have an identifying number. The changes require this number to be from a series that is both unique and sequential. While the new regulations apply to the whole of the VAT population, for most businesses this formal legal change will have no impact on their normal invoicing practice, but if they operate in any of the trades listed below they are encouraged to check for compliance:’

Affected businesses are:

• Businesses using margin schemes for second hand goods, works of art etc.
• Businesses that operate under the Tour Operators Margin Scheme
• Businesses involved in intra EC supplies of goods and services
• Businesses making supplies where the customer accounts for the VAT

Peter adds, ‘The new regulations came into force 1st October 2007 and although there are penalties for non compliance, H M Revenue and Customs have said that they will only levy penalties in exceptional circumstances in the first year of the new regulations, however we would recommend getting off on the right foot and contacting an advisor for instant clarification of your VAT obligations.’

For more information contact Peter Hawley at Dean Statham Chartered Accountants on 01785 238169 or visit www.deanstatham.com.