Michaela Merz


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UK – EU VAT refunds amended legislation in connection with Brexit


HMRC confirmed that the transitional legislation for EU VAT refunds under Part 20 of the VAT Regulations 1995 has been amended to reflect the change in Exit Day from 29 March 2019. The revised legislation was laid on 5 September 2019. You can access a copy of it from this link >

 

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UNITED KINGDOM: UK firms will receive customs numbers that will let them trade with EU after Brexit


Thousands of British firms will finally be given crucial paperwork that allows them to continue trading with the EU after a no-deal Brexit. After months of demands from businesses, more than 88’000 VAT-registered companies will be given a registration number in the next two weeks that allows EU customs authorities to identify them.

Without the paperwork, known as an Economic Operator Registration and Identification (EORI) number, UK firms would not be allowed to trade with the EU after 31 October 2019.

 

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UK: Only the owner of the imported goods can deduct the import VAT as from 15 of July 2019


HMRC is aware of incorrect treatment by businesses whereby import VAT has been incorrectly deducted as input tax by non-owners of the goods.  As from 15th July 2019, HMRC will only allow claims for input VAT deduction if the owner is the importer and pays the UK import VAT. In case the non-owner is the importer and pays the UK import VAT, HMRC will not allow an input VAT deduction. A transitional period to 15th July 2019 has been put in place for businesses to make any necessary changes and implement correct procedures. This is especially important for toll manufacturer, who are acting as importer and recover the import VAT paid. These toll manufacturer does not own the goods.

Toll operators  import goods, process them and distribute them within or outside of the UK but to other EU countries (for instance for clinical trials). The toll operator does not take ownership of the goods and does not resell them. The only supply by the toll operator is of its services to its client not resident and not registered for VAT in UK (the owner of the imported goods).

Title to the goods at all times remains with the owners. However, the toll operator acts as ‘importer of record’ on UK import declarations, pays the import VAT to HMRC and receives the import VAT certificate (C79). HMRC has become aware that a number of UK toll operators who have paid import VAT on behalf of their not resident and not VAT  registered customers have also claimed a corresponding deduction for input tax under section 24 of the VAT Act 1994. However, there is no provision in UK law for such deduction.

There is no evidence to suggest that the businesses concerned have knowingly applied the wrong treatment. In all cases seen by HMRC, the toll operator has dealt with the importation and paid or claimed the import VAT to provide an administrative and cash flow benefit to their customers, as part of the overall service they provide.

The correct procedure is for the owner to be the importer of record and reclaim the import VAT, either in accordance with section 24 of the VAT Act 1994 (if registered for VAT in the UK) or under the Thirteenth VAT Directive (86/560/EEC).

For further details please see here >

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WEBCAST: Latest developments on Brexit


I’m sure, you are tracking the news this week to see the latest developments on Brexit.
PwC UK is holding a special webcast next Wednesday afternoon to reflect on the events of this week, whatever they may bring, and talk about what businesses should be doing to prepare – whatever comes next!
Date: Wednesday 23 January 2019
Time: 14:00 – 15:00 UK time

You can sign up here.

Very happy to have a chat about your own prep, and what we are supporting other clients with if that would be helpful too.

 

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UK: Live Brexit Webcast: An end to uncertainty?


I would like to invite you to a Brexit webcast we are holding on Monday 26 November at 14:00 UK time.  Our Brexit experts will give their insights into the current status of the Brexit process, provide reactions to the announcements at the EU Summit this weekend and discuss how businesses can prepare for Brexit. Please see the relevant details below. Continue reading


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UK – compulsory publication of tax strategy for large businesses required


227673_web_r_by_fikomiwi_pixelio-deThe compulsory publication of tax strategy for large business was introduced by the Finance (No. 2) Bill 2016 and it received Royal Assent on 15 September 2016, so it is now an Act of Parliament (Finance Act 2016 c.24). The relevant provisions for tax strategy are included in Schedule 19 of the Act, attached below at the very end of this blogpost. Continue reading


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PwC webcast “Navigating a path through the EU Referendum result”


PwC_fl_30mmh_c“The UK’s decision to leave the EU will have significant implications for businesses and we are already working with our clients and people to support them as those implications are understood.

“History has taught us that UK business is adaptable and innovative when confronted with new challenges and opportunities. There will be significant uncertainty over the coming months as the detailed political and legal issues are worked out, and business confidence may be impacted. PwC is committed to helping its clients as they adapt to new market conditions and opportunities.”

Statement from Ian Powell, Chairman and Senior Partner of PwC regarding the UK’s decision to leave the EU.
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