Posted: August 24, 2018
As part of the publications regarding the planning for a ‘No Deal’ Brexit the government has published details of the plans for the VAT system. The intention is to maintain the VAT system as closely as possible to the current system. The biggest potential change would be that the government would introduce ‘postponed accounting’ on all goods (both from the EU and outside the EU) brought to the UK. This measure is intended to avoid gridlock at the ports – and particularly for those bringing in goods from outside the EU is a relaxation of the current rules.
The position for those exporting from the UK is more difficult and a ‘No Deal’ Brexit will mean goods sent to the UK will potentially be subject to EU VAT and Duty in the destination country.