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Perfect VAT storm is coming, that’s a certainty post-Brexit

Ongoing Brexit negotiations continue to generate uncertainty, but what is clear is that UK businesses are heading towards a perfect VAT storm when Making Tax Digital and Brexit VAT changes collide, warns Ian Carpenter, partner and head of indirect tax at RSM

As the UK prepares to leave the EU on Friday 29 March, potentially without a deal, businesses will need to consider a number of issues including customs declarations, MOSS and VAT registrations and the effect of this on their ongoing compliance.

Businesses that receive goods from either the UK and EU will need to make customs declarations and pay customs duty and either pay, or account for, import VAT.

The UK government recently confirmed the introduction of postponed accounting for import VAT in the event of a no deal Brexit, so VAT registered businesses can receive imports without prior payment of VAT (customs duty, where applicable, would still be paid).

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