01722 480 300 info@a2zcloud.com

VAT in a post-Brexit world

21
NOVEMBER, 2019
Brexit
VAT

 

 

 

If you have a Zoho Books account, you may have already noticed the new Brexit Updates tab that has appeared there. If you don’t, you may find these details useful anyway. If you want one or would like to know more about Zoho’s Finance solutions, then please get in touch!
Our recent blog, Data-flow in a post Brexit world covered, well, data-flow, so we won’t go over that again. It also linked to the Information Commisioner’s Office website, where you’ll find the latest information and guidance as regards data protection compliance after a no-deal Brexit. Eugh the dreaded GDPR, enough!

As far as the Finance World goes!

For a no-deal Brexit, you’ll find more about VAT, straight from the horse’s mouth, on the Government website and specifics for each of the below headings in their ‘Trading with the EU if there’s no Brexit deal’ notice.

“We at A2Z Cloud cannot give out tax advice though we can outline the Brexit no deal impact on VAT and treatment within Zoho Books. Still confused? Please contact your accountant or HMRC for further information.”

These are the current salient points: 

Sales

Unless the EU rules change, goods entering the EU will be treated in the same way as goods entering from other non-EU countries. 

If you are VAT registered, you can continue zero-rate sales, but won’t need to complete EC sales lists for goods. This means that these sales will need to be recorded elsewhere with a need to retain evidence that proves the goods have left the UK. Apparently, most businesses will already be doing this and the differences in the process will be communicated in due course!

If you are exporting from the UK, here’s how to get your business readyincluding moving goods from Northern Ireland to Ireland. 

Purchases

Reading between the lines, if there is no deal, imports from the EU will be treated in the same way that we currently treat imports from non-EU countries. Although there may be some additional changes. 

If you are importing from the EU, here’s how to get your business ready, including moving goods from Ireland to Northern Ireland

VAT Return

As far as the accounts go, the government plan to introduce postponed accounting for import VAT. So UK VAT registered businesses will be able to account for import VAT on their VAT return rather than paying the import VAT as, or shortly after, the goods arrive. 

Other Transactions

Our resident accountant, Catharina Davies FMAAT says “We at A2Z Cloud cannot give out tax advice though we can outline the Brexit no deal impact on VAT and treatment within Zoho Books. Still confused? Please contact your accountant or HMRC for further information.”

It seems we’re not short on information, or additional work to do. Now all we need is a decision! 

Note: These changes are applicable only in the event of a no-deal Brexit and are correct at the time of publishing. Anything could have happened since then!

Read More From The Blog

The Remote Working Revolution

The Remote Working Revolution

A2Z BlogThe Remote Working Revolution The Government have announced plans to ease the lockdown. It's easy to think that remote working will soon come to an end. However, attitudes to remote working are changing. Coule remote working become a normal part of working...

Zoho Connect: The Unsung Hero of Remote Working

Zoho Connect: The Unsung Hero of Remote Working

A2Z BlogZoho Connect: The Unsung Hero of Remote WorkingRecently, I was working on a blog to help businesses save money. Companies fork out large sums for software licences every year. The theme of the post was to highlight ways that businesses can make savings by...

10 ways to improve your Remote Working Productivity

10 ways to improve your Remote Working Productivity

A2Z Blog10 Ways To Improve Your Remote Working Productivity Many companies have been forced to implement home working practices with no preparation due to the Coronavirus pandemic. Employees throughout the country have been struggling to separate their work life from...

Let's Talk

If you’ve made it this far, then why not take the next step and get in touch with us for a chat – with talented young developers and seasoned veterans A2Z Cloud is a top-notch Zoho partner that can help you modernise and transform your business.