Brexit VAT news Update

It will come as little surprise to note that there have been a wide range of updates on Brexit related VAT issues coming out over recent weeks. We have continued to run our Get Brexit VAT Ready sessions as a quick and complete way for clients and contacts to get an insight into the core areas of VAT change and updates on the latest VAT news.

The most recent Brexit VAT update was on the 30^th November and with the countdown entering the final 30 days to the end of the transition period at 11pm on the 31 December 2020 we have scheduled our last “open to all”  Brexit VAT sessions for the 15^th December. Link   It is probably the last of our “open to all” Brexit VAT Ready sessions as clients are needing tailored support on their individual situations within their supply chains and businesses. Our Brexit Ready VAT Reviews may be better suited therefore to your needs at this time – contact your usual VAT expert here at Centurion or use emailus@centurionvat.com to get in touch.

We have had a number of accountants from practices joining our Brexit VAT sessions so please remember you are welcome to sign up if you are an accountant in practice who needs to make sure you understand what the VAT implications will be for your own client base.

More VAT issues are appearing are appearing when you get to the practical application of policy changes. That is certainly true of UK businesses involved in trade in goods with or through Northern Ireland. We have a number of issues running at the moment in terms of practical VAT accounting in this regard and hopefully we can add an update on these at our session on the 15^th December.

*UK businesses should also be aware that Ireland itself is a part of the EU and will remain so as it is a separate sovereign state from that of Northern Ireland. We have had a number of issues cropping up as businesses get to grips with the fact that trading with one of our most common trading partners is about to change. Please do take care in signing up to new delivery contracts with your existing Irish based customers therefore, as it is really important to understand who will be responsible for accounting for the import declarations and VAT and Duty payments as goods land into Ireland from mainland UK based businesses

*News on the practical VAT front in respect of where to check UK VAT numbers validity is out and the link to the UK VAT Number checker is here

*UK based Financial Services businesses will need to amend their current VAT recovery process post the 1^st Jan 2021 as the Chancellor has announced that the VAT recovery rules will, in future, allow them to claim VAT on their costs if they provide financial services to customers outside of the UK. With a potential upside of an additional £800m of VAT as a result for this UK sector this will certainly be an issue to address. It may involve changes to accounting processes and possibly to previously agreed Partial Exemption Special Methods with HMRC all of which will take time to implement.

*Accountants and business owners from outside the UK are also becoming aware that overseas businesses may need to get a UK VAT registration in place. Overseas businesses from a wide variety of sectors – we had a recent call from an overseas dairy products manufacturer – will need to establish whether they need a VAT registration here in the UK – particularly if stock is held in storage prior to onward sale to UK customers. Clearly the news on Low Value Consignment transactions under £135 in value is a core area for overseas businesses selling goods here in the UK to consumers as opposed to business customers.

A lot going on as you can see. If you need to get back in control of any of these VAT aspects – whether you are:

• an accountant in practice
• a UK based Business exporting or importing
• manufacturing goods here or in Northern Ireland
• part of a UK VAT group with Northern Irish establishments
• Moving your own goods from GB to Northern Ireland
• An Overseas business based in the EU selling into the UK
• A UK business selling goods online to EU customers
• Moving your current business model to online delivery for services you provide
• A University
• ……the list could go on…..

Then perhaps Centurion VAT could offer you the VAT support you need?

• Our next online Get VAT READY for Brexit is on the 15^th December and in an hour will get you in a good update place on the VAT areas to address.

• For our tailored VAT Support for your business through our Brexit VAT Reviews then call us directly 0330 124 7740 or use emailus@centurionvat.com

• If your business is not based in the UK but overseas in Europe, North America, Asia or beyond then get in touch via emailus@centurionvat.com or look at our website where FREE signposting and VAT news may help you www.centurionvat.com

Help is on hand when VAT gets complicated as we always say – just get in touch – your Centurion VAT team is ready to support you or your clients as they prepare for a new business regime outside of the European Union.

For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you seek professional advice before acting on any of the news articles or information included.