VAT: reverse charge for mobile telephones, computer chips and emissions allowances

HMRC has issued Revenue & Customs Brief 36/13 to confirm that the UK will continue to apply the reverse charge for mobile telephones, computer chips and emissions allowances in its current form. The reverse charge for mobile phones and computer chips was implemented in the UK from 1 June 2007 to remove the opportunity for fraudsters to use these goods to perpetrate missing trader intra-community (MTIC) fraud. This was an exception to the normal accounting rules for VAT and the UK secured a derogation from EU law to apply it. It was extended to include emissions allowances.

EU Directive 2013/43/EU confirms that the UK can continue to apply the reverse charge mechanism in relation to affected supplies until the end of 2018. This affects businesses buying and/or selling mobile telephones, integrated circuit devices, such as microprocessors and central processing units, in a state prior to integration into end user products, emissions allowances, emissions reduction units and emissions reduction certificates.

For further information on the reverse charge please see Public Notice 735: VAT reverse charge on specified goods and services.

Via VAT: reverse charge for mobile telephones, computer chips and emissions allowances.

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