TVision Technology Limited

EU VAT – are you ready for 1 January 2010?

22nd September 2009

The EU VAT Package is a series of measures which changes the VAT rules relating to services, introduces a new VAT reporting obligation for cross border services and a new process for recovering VAT through the existing international VAT refund mechanism.

The changes will have an impact on the VAT affairs of any business that purchases or supplies services cross border (both to/from third parties as well as inter-company). The changes being introduced by the EU VAT Package will affect virtually every business. Although the extent to which it will impact businesses will vary, all businesses will need to assess the impact of the VAT Package on their business:

  1. determine the extent to which the new legislation will impact on the business
  2. gain an understanding of the new processes and data required
  3. implement any process changes and train staff
  4. contact your financial software partner to check system compliance

Microsoft Dynamics NAV users on a current version (v4, v5 and 2009) can relax; your system will support the changes.

More information can be found on HMRCs website http://www.hmrc.gov.uk/VAT/cross-border-changes-2010.htm .

Contact us if you’re concerned about whether your system will comply.