ICAEW.com works better with JavaScript enabled.

TAX NEWS

VAT : HMRC abolishes requirement for domestic reverse charge sales lists

Article

Published: 25 May 2022 Update History

The requirement to submit reverse charge sales lists for sales of mobile phones and computer chips will be abolished with effect from 1 July 2022.

A domestic reverse charge requires a UK customer receiving supplies to account for the VAT due, rather than the UK supplier. This mechanism is used to remove the scope for the supplier to not account for the VAT due to HMRC.

Domestic reverse charges have been used for carbon emissions allowances, gas and electricity, telecommunication services, trading of renewable energy certificates and construction services. However, the domestic reverse charge for mobile phones and computer chips was the only one with a requirement to complete a reverse charge sales list.

While the requirement to operate the domestic reverse charge procedure will continue for supplies of mobile phones and computer chips, HMRC has announced that sales lists are required for all periods that include sales made up to 30 June 2022. The removal of the requirement from 1 July 2022 is a welcome administrative simplification and a suggestion made in a recent ICAEW TAXline article.

A final reverse charge sales list for the period up to 30 June 2022 must be submitted with the 06/22 monthly VAT return, or the 06/22, 07/22 or 08/22 quarterly VAT return, depending on the VAT stagger applicable to the business. Businesses that submit annual VAT returns or non-standard VAT returns that include the period to 30 June 2022, but where the return will be filed on or after 17 October 2022, must submit a separate reverse charge sales list for the period up to 30 June 2022 by 17 October 2022.

Read more:

Revenue and Customs Brief 9 (2022): VAT domestic reverse charge for mobile phones and computer chips - GOV.UK (www.gov.uk)

ICAEW Know-How from the Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty
The future of tax after COVID

As digital technologies transform society, the UK government is grappling with balancing the books while ensuring its tax system is fit for purpose. Join us as we take a look at the issues and challenges facing the tax system.

Read more

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly enewsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.