A significant overhaul of the placing of supply measures announced by Europe means extra form-filling for certain suppliers.

Baker Tilly analysis

From 1 January 2010 businesses making supplies to EU businesses will need to submit a quarterly sales listing to HMRC. Companies will have only 14 days to submit these returns to HMRC, unless they file electronically, in which case the time-limit will be extended to 21 days.

In detail

Businesses will need to ensure that they have adequate systems in place to capture the following information on the sales list:

• VAT-registration number of customer
• Value of supplies.

However, for businesses that incur VAT in Member States where they are not VAT registered, the system for reclaiming this VAT will become much simpler from Jan 2010. It is hoped that harmonising the procedural rules across the Member States and moving to an electronic system will enable businesses to successfully obtain the VAT refund to which they are entitled.