New VAT Option to Tax procedures

HM Revenue & Customs have introduced new streamlined measures to process VAT Option to Tax (OTT) notifications received.  VAT registered businesses have to notify HMRC, usually on form VAT 1614a of their decision to opt to tax a piece of land or a commercial building. The OTT converts a supply of land or commercial buildings from VAT exempt to VAT standard rate. Currently HMRC undertake checks on all applications, before issuing a formal written acknowledgement, which can take several months when backlogs arise.  HMRC now will issue an immediate written acknowledgement of receipt only and dispense with any additional verification or check.

For more information, please contact our VAT team here