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).