4 July 2014
From 1 July 2014 a domestic reverse charge for VAT accounting will apply to all wholesale supplies of gas and electricity between counterparties established in the UK.
The domestic reverse charge will not apply to supplies of gas and electricity made under supply license or metered arrangements to domestic and business premises (supplies for consumption).
VAT registered businesses that do not resell or trade the gas or electricity will not be affected.
This means that supplies with a tax point on or after that date will be affected by the change.
The UK tax office will adopt a ‘light touch’ approach with regard to penalties to assist those who are making reasonable efforts to comply with the very tight deadline date of 1 July 2014.
The UK tax office has announced that companies providing electronic services to consumers will be able to register with the new Mini One Stop Shop (MOSS) portal in October 2014 in time for the new VAT rules for such services which will be operative from January 2015.