Brexit May Mean VAT Upfront
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…..
Uniserve commits to a second year of the Sustainable Aviation Fuel (SAF) Programme
We are pleased to announce the extension of our support of the Air France KLM Martinair Cargo (AFKLMP Cargo) Sustainable Aviation Fuel (SAF) programme.Following a successful first year of supporting the SAF programme, which contributes to the development and creation...
European road freight likely to be impacted over French public holidays in May
During the French public holidays in May, we would like to inform you of potential disruptions in European road freight imports and exports from France. These holidays may impact the normal flow of shipments resulting in some delays. France will be observing Victory...
Uniserve empowers Vivid Goliath to navigate peak season successfully
Uniserve proudly announces the successful collaboration with Vivid Goliath, a prominent and Top 10 supplier within the toys and games trade, delivering exceptional results amidst the fast-paced and seasonal demands of their market. Vivid Goliath faced the challenge of...