Brexit May Mean VAT Upfront

Jan 10, 2018 | Global News

Tens of thousands of UK businesses could be forced to pay VAT upfront post Brexit, on goods imported from Europe, in controversial new legislation being considered by MP’s on Monday.

The chair of the Treasury select committee has urged MP’s to investigate the matter further before the customs bill gets its second reading in the House of Commons next week.

Under existing rules, goods imported from the EU are referred to as “acquisitions” for tax purposes, so no VAT is paid until the products have been sold to the final customer and paid for.

If passed, the new legislation could mean that goods from the EU will have to be treated like all other imports after Brexit, and may attract VAT at the time of import.

Terry Clear – Managing Director of Uniserve Group Member – Customs Insights – commented “As we get nearer to exiting the EU, the complexities of our future trading arrangements become more and more apparent. It is critical that MP’s making these decisions fully understand the finer details.” 

“Upfront payment of import VAT will clearly create additional cashflow pressure for some companies. From an operational standpoint, the processing time at ports and border entry points will increase and more responsibility to collect state funds will fall back on logistics providers.”

“Of course we will await the outcome of next week’s debate, and as one of the UK’s leading customs specialists we will pursue HMRC for clarification.”

For further information on the above, or to find out more about Uniserve’s premium European services, please call 01708 259400 or email info@ugroup.co.uk

PLEASE FOLLOW US

FOLLOW US

Premium European Services

The UK’s leading independent provides quality services to and from all major locations across Eastern and Western Europe.

Customs Insights

Your Customs Compliance and Duty Management Experts.

Unrivalled Ocean Freight

Unparalleled choice and flexibility are synonymous with the UK’s leading Ocean Freight provider.

Customs Insights

Your Customs Compliance and Duty Management Experts.

Premium European Services

The UK’s leading independent provides quality services to and from all major locations across Eastern and Western Europe.

Keep in Touch

Please subscribe to receive a monthly newsletter of our latest news and articles.

More News…..

Video: Asia LCL Services

  We hope you enjoy our short 'Asia LCL Services' video. Imports from Asia, where Uniserve are providing unique LCL (less than container load) products, which offer the ultimate in flexibility and reliability. Time: 1 minute 20 Secs PLEASE FOLLOW US...

Uniserve Win Again in BIFA Awards

Uniserve Group have been announced as 'winners' in the coveted European Logistics category, at the BIFA Freight Service Awards on Thursday. The BIFA award ceremony, which was hosted by double Olympic champion Dame Kelly Holmes, encourages and rewards high standards...

Brexit Effect for Air & Sea

The House of Commons voted against Theresa May's Brexit plan by a 230 majority yesterday, the biggest defeat for a UK government in history. The uncertainty therefore continues and we take a look at whether the increasing likelihood of a no-deal Brexit is having any...

Share This

Please Share This Article

It only takes a couple of clicks and it would be greatly appreciated! Many Thanks