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…..

Road Map for Asia Gateway

Singapore have just announced a three-year plan that outlines ways for businesses to innovate their processes and collaborate with each other. The industry-led roadmap, was announced recently by Senior Minister of State for Trade and Industry - Koh Poh Koon - at the...

Apprentice Scheme Continues to Shine

The Uniserve Apprenticeship scheme has been in full flow over the past twelve months and is continuing to prove to be a successful means of attracting and developing new supply chain stars for the future. Three more employees have completed their initial...

Video: Another Bright Idea

We hope you enjoy our short 'Bright Idea' video, which introduces Uniserve EGDC, our Singapore based distribution hub. Time: 51 Secs PLEASE FOLLOW US [et_social_follow icon_style="slide" icon_shape="rounded" icons_location="top" col_number="4" outer_color="light"...

Share This

Please Share This Article

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