VAT and Brexit
Newsletter issue - February 2020.
HMRC have not yet issued any guidance as to how imports from, and exports to, EU and non-EU countries should be recorded for VAT return purposes after 31 January 2021, what happens with the reverse charge, and what should be recorded in boxes 8 & 9 of the VAT return. The last guidance given was in the case of a no deal Brexit and we are monitoring any new advice as it is issued.
HMRC have said:
- There will be NO requirement to complete an EC sales list for sales after 1 January 2021.
- Intrastat returns WILL continue to be required.
Any changes in reporting and claiming will affect all invoices raised to non-UK customers and any duty or VAT on imports after 1 February 2021 will be affected. Businesses need to be ready to make changes to how these invoices are recorded once guidance is available.
Accounting software is likely to require updating once the reporting requirements are clarified.
Current HMRC guidance on Brexit can be found on the Gov.uk website at https://www.gov.uk/topic/business-tax/vat.