Update on HMRC Tax Changes Effective 1st January 2010

From the first of January 2010 the HMRC are introducing new VAT rules; the changes will enable tax authorities to check that VAT is being accounted for correctly by businesses receiving intra-EU supplies of services (or recapitulative statements).


Those businesses affected will be:

• Businesses who supply services to overseas businesses
• Businesses receiving services from overseas businesses
• Businesses who supply goods to other EC countries
• Businesses who want to reclaim VAT incurred in another EC country

Those businesses affected by the changes will need a Sage tax service pack, however it is also anticipated that some older releases of Sage Enterprise, CS3, Line 200 and Line 500 may require an upgrade. The tax service pack will be available from November 2009 and includes the following changes to be applied to the Sage versions detailed:

• EC Sales List Changes
  
  This will extend the EC Sales List report functionality to include designated services in a CSV output file format which can be bulk uploaded to HMRC.
  
  Available for:

• • Sage 1000 (All Versions)
  • Line 500 (All Versions)
  • Line 200 (All Versions)
  • CS3 (v3.0, v3.1 and v4.0)

• 2010 VAT Rate Changes
  
  This will enhance the sales order processing invoicing / credit note functionality to ease the change over to the new VAT rate.
  

Available for:

• • Sage 1000 (All Versions)
  • Line 500 (All Versions)
  • Line 200 (All Versions)
  • CS3 (v3.0, v3.1 and v4.0)

• VAT Changes
  
  To the Contract Management Module.
  
  Available for:

• • Sage 1000 (All Versions)
  • Line 500 (v7.1, v7.0, v6.0)

If you are on an earlier version and require this element please let us know.

• Intra-EC Invoice Changes

This will allow for references to be printed on the Sales Order invoices (for Telesales, Contract Management and Project Billing) when a VAT code has been nominated as either to be 'Zero', 'Exempt' or 'Reverse'.

Available for:

• • Sage 1000 (All Version)
  • Line 500 (All Versions)
  • Line 200 (All Versions)
  • CS3 (v3.0, v3.1 and v4.0)

Please contact Pinnacle Direct if you do require the Tax Service Pack and installation. We will be happy to work with you to plan the application of the service pack.