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Friday, 1 February 2019

VAT Update

As anyone following this blog knows, on April 1 we all become April Fools. Because for a lot of people, that is the date (or soon after) that we submit our quarterly VAT returns, and then pay the VAT.

But "Making Tax Digital" is happening, and instead of filling in the form with half a dozen numbers, we have to submit the form electronically. And to do that, you need to get a username and password.

I already have a username and password for VAT - that's how I've been submitting my VAT return for ages. But no. They don't want it to be that easy. I have to make myself a new username and password. And they don't make it easy to discover where you sign up - I challenge you to find it. So here's what I've discovered.

Sign up here.

I haven't signed up yet. They want my UTR (Unique Taxpayer Reference number), which I've never needed before, and I'll need to find it.

But there's more. On March 29th, ...

Actually, I don't know what will happen on March 29th, and neither does anyone else, including the 650 Lords of Chaos who are currently starring in the Brexit pantomime. But we're being asked to prepare for "No deal".

In "No Deal",  we are no longer in the EU, but I still have an obligation to pay VAT on sales to the EU-27 countries. Or do I? I don't know, nor does anyone else. I don't pay VAT on sales to Australia, Canada or the USA, so why should I pay other foreign taxes? I don't know.

If I do have to pay VAT to the EU-27, how do I do it? I currently pay via the "Union VAT MOSS" system, but if the UK is no longer in the EU, that won't work. Or will it? I don't know, nor does anyone else.

If it doesn't work, I have to sign up for the  "non-Union VAT MOSS" system in some other country. I had a look at the Irish web site (they speak English there) but that started asking me for information that I don't have.

The Lords of Chaos are incompetent, incoherent and clueless.

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