VAT in a post-Brexit world
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!
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.
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 ready, including 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!
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