VAT: no change in registration and deregistration thresholds


The VAT registration and deregistration thresholds will remain unchanged for 2019/20.

Therefore legislation will continue as follows:

* the taxable turnover threshold that determines whether a person must be registered for VAT will remain at £85,000;
* the taxable turnover threshold that determines whether a person may apply for deregistration will remain at £83,000;
* the registration and deregistration threshold for relevant acquisitions from other EU Member States will also remain at £85,000.

VAT: treatment of vouchers from 1 January 2019
The government will implement an EU Directive on the VAT treatment of vouchers in time for the required date of 1 January 2019. This will simplify the rules for the tax treatment of vouchers, especially where they can be used either in the UK or more widely in the EU. This will prevent either non-taxation or double taxation of goods or services which relate to vouchers.

The legislation provides for the VAT treatment of vouchers issued on or after 1 January 2019. It affects only vouchers for which a payment has been made and which will be used to buy something. It does not apply to vouchers issued before 1 January 2019, for which existing rules will continue to apply.

Vouchers, in this context, are gift cards and gift tokens, with examples including simple book tokens, gift vouchers and electronic vouchers purchased from specialist businesses. The changes do not apply to discount vouchers or money-off tokens.

Under current UK VAT legislation, the customer is deemed to be receiving two supplies, namely a voucher and an underlying supply of goods or services. The new rules determine that for VAT purposes there will no longer be a separate supply of a voucher. Instead the rules will be simplified so that there is only the supply of the underlying goods or services, which will be provided in exchange for the voucher at a later date.

Added By: Sue Taylor on 01st Nov 2018 - 14:02
Last Updated: 01st Nov 2018 - 20:11

Number of Views: 193
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