As well as the increase to the standard rate of VAT to 20% on 4 January 2011, the following changes took place with effect from 1 January 2011.
- Changes to Lennartz accounting-this will affect taxpayers buying land, property, boats or aircraft on or after 1 January.
- Changes to Capital Goods Scheme (CGS)-these will affect partly exempt businesses, taxpayers with non-business use of assets in the CGS, taxpayers acquiring CGS assets before they register for VAT, taxpayers using or intending to use Lennartz accounting.
The place of supply rules for cultural, sporting, scientific, educational and entertainment services supplied to relevant business customers also changed on 1 January 2011. From that date most business to business (B2B) supplies of these services will be taxed where the customer us established under the B2B general place of supply rule. However, admissions to cultural, artistic, sporting, scientific, educational and entertainment events and services ancillary to admissions (such as cloakrooms) will remain taxable where the event takes place.
More details on all these changes can be found in our 6 January 2011 newsletter and on HMRC's website.
