Agent Update 69

3 Jan 2019

HMRC has published Revenue & Customs Brief 12/18 that details how to deal with the unintended consequences of their policy change on certificates of status (COS) in May this year. HMRC has become much stricter on the details required on a COS as set out in VAT Regulations 1995, resulting in several countries‚ COS becoming rejected, including the 6166 produced by the IRS in the USA. As the policy was not publicised, this has resulted in many claimants submitting appeals. The CIOT, as well as other representative bodies, have been in contact with HMRC to address these issues.

The brief sets out the position for rejected 16/17 claims and a 3 month extension (to 31 March 2019) for businesses to obtain a correct format COS for 2018 claims. However, please note that there is no extension for the 13th directive claim itself, which must still be lodged with HMRC by 31 December 2018 as usual. Full details about the extension and claims are set out in the brief here.