• October 21, 2019

VAT in a no deal Brexit

VAT in a no deal Brexit

VAT in a no deal Brexit 683 1024 Nadim

It seems highly likely that the UK is on course for a no deal Brexit. HMRC have provided their guidance on the issues which small businesses will face in the event.

EORI numbers

Previously, these were only relevant to non EU imports and exports. However, in the event of a no deal Brexit UK businesses will require a UK EORI number.
Of course, its important to distinguish between an EU and UK EORI number, an EU EORI number will be required if a business has establishments in other EU countries.
EORI numbers are only relevant to supplies of goods, they are not required for services.

Postponed accounting for import VAT

The current system means that UK businesses pay VAT at the time of import of their goods. After a no deal Brexit, VAT on imports will be declared on the relevant VAT return instead.
The end result being a cash flow benefit for UK businesses.
Non VAT registered businesses will not be able to benefit from the postponed accounting, they will be required to pay VAT when goods arrive in the UK.

VAT number checking

UK businesses will now have their own website, introduced by the government for checking UK VAT numbers. The EU website will still be in operation, but UK numbers will not be available on it.
EC Sales lists and Intrastat declarations will no longer be required

VAT refunds from EU countries

UK businesses can recover VAT incurred in EU countries by submitting a refund via HMRC. Claims must be made directly with the relevant question using the non – EU refund system.

Kala Atkinson is a family owned accountancy practice in East London. We’re experts in small and medium sized businesses and self employed individuals.

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