HMRC publishes VAT guidance in the event of no-deal Brexit
What will the deal be with VAT in the event of a no-deal Brexit? HMRC has released guidelines to make business owners aware of both immediate and long-term changes if no trade agreement is struck with the EU.
As the Brexit countdown enters its final 200 days, HMRC has issued VAT guidance for business owners if the government returns without a trade agreement. The short version is that VAT is here to stay and broadly speaking, transactions with EU countries will be treated the same way as transactions with non-EU countries are currently treated.
There are a few examples of the changes and yes, it is technical stuff, but this is VAT?:
VAT on imported goods
VAT on goods imported from anywhere in the world would be accounted for on the VAT return in the same way as you currently account for VAT on imports from the EU.
Low Value Consignment relief
Low Value Consignment relief would be abolished for all incoming parcels from anywhere (it will probably be abolished anyway as it is the way the rest of the world is going).
Tour Operators Margin Scheme
The Tour Operators Margin Scheme is an EU VAT accounting scheme and there is no indication how it would be replaced (trade consultations are ongoing).
Read more HMRC content:
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
New measures introduced today by HMRC will make digital marketplaces more accountable to online VAT fraud committed by overseas sellers and help the tax office recoup up to 1.5bn in lost revenue. more»
Lowering the VAT threshold from its current level would be disastrous? for the UK economy, according to a trade body urging the government to lift more micro businesses out of the system altogether. more»