‘No Deal’ Brexit Advice has been Published by the UK Government
The government’s first batch of advice for UK businesses in the event of a no deal Brexit includes help with both VAT and customs duty.
Advice is for businesses to review supply chains, renegotiate contracts for higher duty costs and consider getting advice about using customs procedures such as warehousing, inward processing relief or identifying software to help with declarations. On the VAT side, VAT will continue after 29 March 2019.
Businesses will be able to postpone payment of import VAT on all imports, not just those from the EU, so that VAT will be declared on VAT returns and not paid at the border. There are still gaps however – no decision on the future of TOMS, the special VAT scheme for tour operators, and no decision on changes to input tax recovery rules for UK businesses supplying insurance and financial services to EU customers. More information is promised in these areas.
This article originally appeared on the blog of our member firm, MHA MacIntyre Hudson.