No Deal Brexit - VAT Postponed Accounting will be Introduced
Thursday 23rd August 2018
The VAT specific No Deal Preparation Paper issued by HM Government announces that Postponed Accounting will be introduced for Imports into the UK;
Accounting for import VAT on goods imported into the UK
If the UK leaves the EU without an agreement, the government will introduce postponed accounting for import VAT on goods brought into the UK. This means that UK VAT registered businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the UK border. This will apply both to imports from the EU and non-EU countries.
In reaching this decision, the government has taken account of the views of businesses and sought to mitigate any adverse cash-flow impacts keeping VAT processes as close as possible to what they are now. To ensure equity of treatment, in a no deal scenario, businesses importing goods will be able to account for their import VAT from non-EU countries in the same way, which will help UK businesses make the most of trading opportunities around the world. Customs declarations and the payment of any other duties will still be required and more detail on these processes can be found in the 'Trading with the EU if there's no Brexit deal' technical notice. More guidance setting out further detail on accounting and record keeping requirements will be issued in due course.