VARs to join electronic VAT club
HM Customs and Excise to enforce electronic filing on some firms
Resellers should prepare to process their VAT returns electronically, as HM Customs and Excise (HMCE) reveals its plans to make electronic returns mandatory for some companies in the next three years.
HMCE is looking to increase electronic VAT filing to cut its own costs, and wants more than half of UK businesses to file in this way by March 2006.
Michael Eland, HMCE's acting chairman, told the Public Accounts Committee that he was considering incentives to encourage take-up but may enforce electronic filing on certain firms.
"We will look at a mandatory scheme in some areas for certain types of business. We are looking to get 50 per cent take-up by March 2006," he said.
This is most likely to be aimed at large companies that have sophisticated IT systems. Smaller businesses may be reluctant to move away from the relatively easy-to-use paper-based system.
Simon Gay, consultancy practice leader at Computacenter, said that, although electronic VAT returns should be easy to process, some companies may need to update their systems.
"If it becomes mandatory then it's hugely important that firms have the right systems in place to ensure it works," he said.
But Eddie Pacey, director of credit services at Bell Microproducts Europe, said: "Filing electronically shouldn't be much harder. In fact, electronic data transfer will make the process more secure and quicker."
Reseller ISC Networks said it was considering filing electronically. A representative of the company said: "All you need is a PC and access to the internet.
"Little training is required; the forms on the web site are the same as the ones in hard copy."