A brave new world for import VAT
New year and new beginnings. For the UK 2021 will bring the start of an era where it is no longer a part of the European Union.
As the transition period draws to a close so will the UK's import VAT agreement with the EU meaning that UK VAT-registered businesses will have a different process for accounting for import VAT.
Previously businesses paid upfront VAT when importing goods and recovered the costs later. In preparation for the more permanent adjustment to VAT reporting in a post-Brexit UK temporary rules have been put in place to provide relief to businesses and to streamline the reporting and settlement of import VAT. These changes which will be in place between 1 January and 30 June 2021 allow businesses to declare and recover import VAT costs when submitting VAT returns periodically to HMRC.
PraxisIFM Corporate Services (UK) provides VAT registration and compliance services to a large number of UK and foreign entities which may be liable to pay VAT in the United Kingdom. These services ensure the timely submission of our clients' VAT returns for businesses to HMRC and assistance with the import declaration as part of the returns.
Our team is continually ensuring they are up to speed with what post-Brexit submissions will look like and the information to be provided in preparation for January 2021.
To determine when you can or need to account for import VAT from the 1 January 2021 or for further advice and guidance submitting VAT returns talk to our Corporate Services experts Donna Shorto and James Barber Lomax.