- Extension of Final VAT Return Deadline: The UK will formalize the option to extend the deadline for the final VAT return when businesses de-register from VAT. Currently, businesses must submit their final return within one month of cancellation, with a one-week extension for electronic submissions. The new regulation will empower HMRC to extend this deadline officially, particularly beneficial in cases of delays or compliance checks.
- Implementation Timeline: The change is set to take effect on June 13, 2025, following the introduction of the Value Added Tax (Amendment) Regulations 2025. This amendment will revise existing VAT regulations to grant HMRC the authority to extend deadlines, enhancing fairness in the de-registration process.
- Impact on Businesses: The new rule will provide businesses more time to prepare and submit their final VAT returns, reducing the risk of penalties for late submissions due to unforeseen delays. This aligns the final return process with existing regulations for regular VAT returns, promoting clarity and consistency in VAT compliance for businesses undergoing de-registration.
Source: marosavat.com
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