Amendment to regulations for filing VAT returns
Following a tribunal ruling, changes have been made to regulations for filing VAT returns.
HM Revenue & Customs have confirmed a change to regulations for the filing of VAT returns after a tribunal ruled that UK VAT law failed to take into account the difficulties some individuals have in filing returns online.
From April 2012 the vast majority of businesses were legally mandated to file their VAT returns online. While many found it easy to make the transition from paper filing, HMRC was contacted by a number of individuals to explain their difficulties in filing in returns online. The businesses were advised of digital assistance options to meet the legal obligation, including that they should use public libraries, the computers of friends or family, use the services of an agent or, if none of these were appropriate to use the existing filing by telephone service.
However in response to appeals against the requirement to file online, the First-tier tribunal ruled that UK VAT law failed to take account of an individual's ability to comply on account of age, disability, computer literacy and remoteness of location and, as such, was a breach of the European Convention on Human Rights (ECHR).
The judge also held that HMRC could not rely on the fact that telephone filing had been made available to certain businesses to remedy the breach as it had not been legislated for or properly publicised.
Following formal consultation Regulation 25A of VAT Regulations 1995 has been amended to enable HMRC to make a Commissioners' direction approving telephone filing as an alternative method for filing for businesses that satisfy HMRC that it is it not practicable to use the online service and to provide an exemption for businesses that satisfy HMRC that it is not reasonably practicable for them to use the online service so that such businesses can file on paper.
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