UK: VAT Notice 700/1 Updates and Enhancements

HM Revenue and Customs (HMRC) of the United Kingdom introduced significant updates to VAT Notice 700/1, focusing on VAT registration requirements. These updates encompass several key areas:

1. Guidance for Non-Established Taxable Persons (NETPs):

   • Detailed information on when and how NETPs, including overseas seller NETPs, must register for VAT.
   • Clear delineation of penalties for noncompliance.

2. Voluntary Registration Changes:

   • Removal of information pertaining to voluntary registration for NETPs.

3. Making Tax Digital Amendments:

   • Adjustments to guidance on using Making Tax Digital for maintaining digital records.

4. Penalties for Non-Advisement:

   • Introduction of penalties for failing to inform HMRC of liability for registration.

5. EU Registration Threshold Update:

   • Reflection of the new annual 10,000 euros (approximately US$10,813) EU registration threshold for distance selling into EU member countries.

Source: gov.uk

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