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
Canada: Nova Scotia to decrease its standard...
From 1 April 2025, the Canadian province of Nova Scotia will reduce the HST rate applied within the province from 15% to 14%. There are no other HST rate...
SEE MORE
LATEST NEWS
REMINDER: Estonia standard VAT rate increase to 24%...
From 1 July 2025, Estonia will increase its standard VAT rate from 22% to 24%. The reduced VAT rates will also increase from 9% to 13% and from 5% to 9%. The...
SEE MORE
LATEST NEWS
South Africa confirms the removal of VAT charges on...
The South African Revenue Service (SARS) has confirmed that foreign traders who supply electronic services only to business customers in South Africa, will not...
SEE MORE