These new rules concern business to consumer (“B2C”) transactions only. Business to business (“B2B”) services are not affected.
Let us say you go into your local shop to buy a CD or a packet of cigarettes. You see that the item is labelled £10 plus VAT (yes, I know, it’s more likely to be something like £9.99, but I’m making the price £10 so that the sums are easier). What does this actually mean in tax terms, and why is it so important?