Value Added Tax Act 1994 Schedule 11 paragraph 2

Accounting for VAT and payment of VAT

Schedule 11 paragraph 2 sets out the regulation-making powers for VAT accounting, record-keeping, returns and payment, including special provisions for retailers, cash accounting, reverse charge supplies and the importation of means of transport.

• HMRC may make regulations requiring businesses to keep accounts, submit returns and provide information in prescribed forms, and to notify HMRC when they begin, cease or resume making reverse charge supplies
• When certain means of transport (ships over 7.5 metres, aircraft over 1,550 kg take-off weight, or motorised land vehicles with engines over 48 cc or electric motors over 7.2 kW) are imported into the UK, the person liable for import VAT must notify HMRC of their arrival and pay any VAT due in the manner and at the time specified
• Special retail schemes may be used to determine the value of supplies and the proportion attributable to different supply types, and cash accounting rules may allow VAT to be accounted for when payment is received rather than when the supply is made
• Regulations may shift VAT between accounting periods, provide for error corrections and financial adjustments, apply different rules to different circumstances, and treat any VAT due or VAT credit of less than £1 at the end of an accounting period as nil