Notify HMRC to avoid retrospective VAT for direct marketing services

Revenue and Customs Brief 10 emphasises need for notification to avoid retrospective VAT on Direct Marketing services

HMRC have now issued a Business Brief (Revenue and Customs Brief 10 (2015) : VAT direct marketing services using printed matter) that gives the definitive details of the “transitional arrangements” or concessions that have been agreed over the treatment of zero rated supplies before 1^st August 2015.

It confirms that no retrospective action will be taken where services such as postage or unaddressed mail distribution costs were included as part of a zero rated supply “in error” provided the supplier has notified HMRC that they want to be part of the transitional arrangements by 30^th November 2015.

Suppliers can notify HMRC either by post or email and full details of how to register and the transitional arrangements are included in the Business Brief here:

https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2015-vat-direct-marketing-services-using-printed-matter

We would strongly recommend that you notify HMRC that you wish to be part of the transitional arrangements if you have at any point included other services such as postage as part of a zero rated supply of print. Failure to do so means that you could be liable for a retrospective VAT charge at an assessment in the future.