VAT 2010: “Basic issues” for businesses

The 2010 VAT changes start becoming effective from 1 January 2010. Businesses need to be aware as to how these changes affect them and to be prepared in terms of compliance with the VAT changes 2010. We have a checklist below which raises questions that might be relevant to your business in anticipation of the EU 2010 cross-border VAT changes:

-As the changes primarily involve cross-border B2B supplies of services, how will you know whether your customer is in business?

- What should you do if your customer cannot provide sufficient evidence that they are in business?

-The rules relate to supplies to a “relevant business person”. Who is a “relevant business person”?

- What if your customer is involved in both business and non-business activities e.g. in the case of a charity or a government department?

- How do you treat a supply to a “business” customer who will use it wholly for their private use or the private use of their staff?