2 April 2020
From 1 January 2021, the UK government has confirmed that it will introduce postponed import Value Added Tax (VAT) accounting to all imports of goods.
By introducing this new mechanism, it 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 regularly, 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
E-invoicing hub
Navigating complexity and preparing for the digitalisation of VAT and the future of tax Following compromises and modifications to the original proposal, the...
SEE MORE
LATEST NEWS
EU finance ministers agree to introduce new customs...
In November, the Economic and Financial Affairs Council (ECOFIN) agreed to introduce a customs charge on low-value parcels valued below €150. The charge...
SEE MORE
LATEST NEWS
UPDATE: Swiss government confirms likely delay for the...
The Swiss tax authorities have confirmed that the increase in the standard VAT rate from 8.1% to 8.8% will now be postponed until 2028. This VAT rate increase...
SEE MORE