Brexit Alert: Postponed VAT Accounting and import VAT recovery from January 2021
In January 2021, the UK government introduced postponed import VAT accounting (PVA) for all imports of goods (from EU and non-EU countries). Businesses are urged to act now to take advantage of PVA wherever possible, ensuring they register to obtain the relevant evidence from HMRC to support the recovery of import VAT.
Brexit Alert: VAT recovery by financial services and insurance providers
Rishi Sunak, the UK Chancellor of the Exchequer, has announced that from 1 January 2021 UK businesses that provide certain financial and insurance services, known as specified supplies, to EU customers will be entitled to reclaim VAT on the costs related to providing those services.
Brexit Alert: Exporting to the EU
From 1 January 2021, goods sent from GB to the EU will be treated as exports (rather than dispatches) and subject to customs formalities at both the GB and EU borders. Import VAT and customs duty will be payable where applicable by the party importing into the EU.
Brexit Alert: Moving goods under the Northern Ireland Protocol
After 31 December 2020, when the UK’s Brexit transition period expires, movements of goods between NI and the EU will be treated as intra-EU transactions, and movements of goods between NI and GB will be treated as imports and exports.
Brexit Alert: Withdrawal of the VAT Retail Export Scheme and airside tax-free sales concession
Following public consultation the UK government has announced that the VAT Retail Export Scheme and airside tax-free sales concession will be withdrawn in Great Britain. Overseas visitors will no longer be able to obtain a VAT refund on items they buy in GB and take home with them in their luggage.
VAT: 2020 QUICK FIXES – CHAIN TRANSACTIONS
The EU “quick fixes” package relating to cross-border trade will come into effect from 1 January 2020. Here we provide an overview of the chain transaction quick fix and highlight what businesses need to be doing to prepare for the new rules.