HMRC estimates 135,000 companies exporting to the EU will confront new VAT disclosures, customs declarations & potential VAT compliance bills.

Small e-commerce businesses could be hit hard as the £15 VAT-free import threshold for packages coming from outside the EU will be scrapped.

Business using Mini One Stop Shop (MOSS) would have to register again in an EU member state.

The UK Government will introduce postponed accounting for import VAT on goods brought into the UK. UK VAT registered businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT rather than on border arrival.

Under a no-deal Brexit you can still zero-rate sales of goods to EU businesses but won’t be required to complete EC sales lists.

Those exporting goods to EU should retain evidence to prove goods have left the UK, to support the zero-rating of the supply. Goods entering EU from UK will be treated as a third party country with associated import VAT & customs duties due on arrival to the EU. Individual EU member states may have different rules for import VAT for non-EU countries & import VAT payments may be due at the border when importing goods.

Services is another ball game.

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