Reverse charge sales lists for eligible mobile phone and computer chip sales

This page relates to mobile phone and computer chip manufacturers, importers, wholesalers, retailers and internet retailers in the United Kingdom.

Took effect on
1 July 2007

From 1 July 2007, you must notify HM Revenue & Customs (HMRC) within 30 days if you cease to make reverse charge supplies or if you recommence making such supplies.

Under existing rules, you should already be using reverse charge accounting for most mobile phone or computer chip transactions:

• made on or after 1 June 2007 
• from one VAT-registered business to another 
• with a VAT-exclusive value of £5,000 per invoice or more

Reverse charge accounting places the obligation on the customer and not the supplier to account to HMRC for VAT on the supplied goods within the UK.

When you supply goods that are eligible for the reverse charge accounting system, you must:

• Notify HMRC within 30 days of the first supply. 
• Register online for the reverse charge sales list (RCSL) system through the HMRC website. 
• Electronically submit an RCSL for each VAT return period in which you make eligible sales. You will be able to provide the information directly online or via a suitable accounts software application.
• Submit your RCSL on the same basis and to the same deadline as your normal VAT returns - eg a monthly, quarterly or non-standard VAT returns period. 
• Show the UK VAT registration number of each customer. 
• List the total net value of goods supplied to each customer for each calendar month in the reporting period.
• Provide your contact name and telephone number.

If you do not make any reverse charge sales in a particular VAT period, you must submit a nil declaration.

Normal VAT accounting continues to apply to supplies of these goods below the £5,000 limit.

• Browse the documents on the RCSL service page on the HMRC website - Opens in a new window
• Find VAT Information Sheet 08/07 on reverse charge VAT for mobile phones and computer chips at the HMRC website - Opens in a new window

Full title of regulation
The Value Added Tax (Amendment) (No.4) Regulations 2007

From
HM Revenue & Customs

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Note: This is the original regulation update text, published on 27 June 2007. Unlike the rest of the site, this archived material is not updated if the law changes.

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