EU IMPORTS AFTER BREXIT

[Cathi]

After Brexit I believe all goods imported from the EU will be subject to 20% Customs VAT that will need to be declared and paid to HMRC on the relevant VAT return.

Is it also possible to reclaim that VAT as input tax on the same VAT return so that it cancels it out (if we have all the relevant documentation)?

NOTE I am referring here to businesses on the standard scheme for VAT. 

Thanks in advance. 

[VAT-adviser]

Yes, HMRC has published a policy paper entitled “Accounting for VAT on services between the UK and EU member states from 1 January 2021”. The paper confirms that, from 1 January 2021 following the end of the transition period with the EU, the VAT rules applying for supplying services between the UK and EU member states will become the same as the current rules for supplying services from the UK to outside the EU, hence import VAT will be charged (if there is no BREXIT deal).

You may find this article helpful esp relating to deferring import VAT/duties and getting an EORI number, etc  https://www.sage.com/en-gb/blog/customs-and-vat-after-brexit/#importing-anchor-link

[Author]

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