BREXIT NEWS: Ireland proposes postponed accounting for import VAT

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In the event of a no-deal Brexit, the Irish government is proposing to implement postponed import VAT accounting. This will allow all companies who import goods from the UK into Ireland, to avoid having to pay VAT on the clearance of their goods into the country. Instead, the import VAT amounts will be postponed to the Irish VAT returns and will be entered in the same way as a reverse charge transaction.

This will help companies who import goods in this way, from incurring additional shipping costs and bank charges, as well as improve their cash flow as they will not have to wait for import VAT to be refunded by the Irish Revenue.

The UK will also introduce a similar scheme for all UK importers after Brexit and around 20 other EU countries offer varying types of these schemes to importers.