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VAT issues to consider for no deal Brexit

Fair View Accountants > Blog > Tax Saving tips and Advice > VAT issues to consider for no deal Brexit
No Deal Brexit

The deadline for Brexit is only five months away which means you need to start preparing for ins and outs of the no deal scenario from today. It is recommended that you prepare on the assumption that no deal will be reached.

For most UK businesses there will be no change to the VAT rules. If the UK leaves the EU on 29 March 2019 without a deal, HMRC has said that their aim will be to keep VAT procedures as close as possible to what they are now.

In a no deal scenario UK businesses importing goods from the EU, the current rules for imports from non-EU countries will also apply to imports from the EU,  with some additional changes.  The government aims to introduce postponed accounting for import VAT on goods brought into the UK.

If the UK leaves the EU without an agreement, VAT will be payable on goods entering the UK as parcels sent by overseas businesses.

If the UK leaves the EU without an agreement, businesses should continue to notify HMRC about vehicles brought into the UK from abroad as they do now. The Notification of Vehicle Arrival Procedures (NOVA) system will continue to be used for this purpose.

UK businesses exporting goods to the EU should check with the EU or Member State the rules and processes which need to apply to their goods.

UK businesses exporting goods to EU consumers will be able to zero rate sales of goods to EU consumers.

UK businesses exporting goods to EU businesses that are VAT registered will continue to be able to zero-rate sales of goods to EU businesses but will not be required to complete EC sales lists.

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