Changes in Vat rules for exports

HMRC have published the outcome of the consultation they held on changes to VAT zero-rating of exports from the UK say Harris & Co chartered accountants Northampton as part of thier pro active accountancy services for small businesses. 

The consultation ran from 13 May 2013 until 5 July 2013 and considered whether the proposed changes to VAT law would achieve the intended result and what impact the changes would have on affected businesses.

The outcome document provides details of the responses to the consultation and sets out the actions HMRC will take as a result. Six responses were received, all from representative bodies. As four out of the six respondents agreed that the draft legislation does achieve the intended policy change and two did not respond to this question, HMRC conclude that the draft legislation does achieve the intended policy change. Therefore, changes to the law will be implemented on 1 October 2013 as planned and are contained in The Value Added Tax (Amendment) (No. 2) Regulations 2013 (SI 2013/2241).

Concerns were raised from respondents about the amount of planned publicity, therefore further publicity and guidance will be issued by HMRC to provide affected businesses with more information about the impact of the changes. HMRC will also update existing web guidance and public notices to ensure the changes are accurately reflected.