VAT Will Still Be With Us Whether It`s A Brexit Deal Or No Deal
Thursday, August 30th 2018 4:44pm
But whether there is a Brexit deal or a no deal there is very little doubt that VAT is here to stay as it is far too valuable for HMRC to let it go. The Department for Exiting the European Union has issued a number of guidelines giving details on what is likely to happen if it does come to pass that there is no deal and some of these details concern VAT and how Brexit will affect businesses.
The main headlines of these guidelines concerning VAT, as published on the Business Advice website are as follows:
- The UK will continue to have a VAT system after it leaves the EU
- Businesses will need to apply the same customs rules to goods moving between the EU and the UK as they would for the rest of the world
- Postponed accounting for import VAT will be applied on goods coming into the UK
- VAT will be payable on goods entering the UK as parcels sent by overseas businesses (currently true for parcels from outside the EU). For parcels worth up to £135, a technology-based solution will be applied where overseas businesses register with HMRC in order to pay VAT
- The UK will cease to be a member of EU VAT IT systems including the VAT Mini One Stop Shop.
Confidence In Goods & Services
When the UK leaves the EU it is vital that confidence and trust in all the goods and services from this country are maintained so that businesses will be affected as little as possible by the changes.
If you own a business and you would like any advice on your business and how it will be affected by Brexit please give us a call for a chat in the first instance on 028 3752 2909 and we will be glad to assist you.