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Wednesday, 29 August 2018

Vat reporting changes

Three ironic cheers for HMRC.

At the moment, in order to report my VAT numbers and how much tax to pay, I log into their web site and type the numbers into a form. Simple.

But I've just heard that they are "going digital". In future, I will have to type the numbers into a Excel spreadsheet and run some software that transmits the same numbers to HMRC. I wonder if that software will work on Linux? Fortunately, I still have a Windows computer, and I probably have an old copy of Excel somewhere.

How is that an advance?

Meanwhile, at the end of next March, we leave the EU. Unless we don't. And at that point, what happens with VAT?

At the moment, I charge VAT on all sales to EU countries, at the various VAT rates of each country, and then I use a thing called "VAT MOSS" to pay the VAT to the 27 EU countries. On sales to non-EU countries, such as the USA, I don't charge VAT, because they aren't EU.

What happens after March 29?

I have no idea. HMRC has no idea. HMG has no idea. Seven months from now, it all changes, and no-one knows what it changes to.

Instead of messing around with how I report UK VAT, they should be sorting out what's going to happen with VAT and Brexit.


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