BREXIT NEWS: UK Brexit postponed accounting law for import VAT

5 February 2019

The UK government has issued draft legislation relating to the implementation of postponed import VAT accounting in the event of a no-deal Brexit, please click here to view this legislation in full.

As per our original article back in September 2018, postponed import VAT accounting will allow all UK VAT registered businesses to avoid having to pay VAT on the clearance of their goods into the UK. Instead, the import VAT amounts will be postponed to the VAT returns and will be entered in the same way as a reverse charge transaction.

It is hoped that this will result in savings on shipping costs and bank charges for the companies who import goods on a regular basis, as well as improve their cash flow as they will no longer have to wait for import VAT to be refunded by the UK tax authorities (HMRC).

LATEST NEWS

Brexit: actions to help you prepare

The transition period after Brexit comes to an end this year and even if a trade deal is agreed, there will be a host of changes to the current VAT regime that...

SEE MORE
LATEST NEWS

Costa Rica to introduce VAT on electronic services...

From 1 October 2020, Costa Rica will introduce VAT at 13% on the provision of electronic services by non-resident companies. At present, foreign businesses...

SEE MORE
LATEST NEWS

Indonesia confirms VAT on foreign e-commerce from 1...

From 1 September 2020, the Indonesian tax authorities will introduce VAT at 10% on all e-services transactions made by non-resident companies. Currently...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.