As you will be aware, the UK Government’s VAT Deferral scheme has now ceased. This means that all payments in respect of UK VAT from 01 July 2020 will be required to be made by the relevant date.
UK – How to pay VAT due on time
Tag: UK
UK: Invitation PwC global customs and international trade Brexit webcast: 9 July 2020
With the continuing uncertainty over the possibility of an extension to the Brexit transition period beyond 31 December 2020, PwC UK is hosting a global webcast on Thursday 9 July 2020 at 3pm-4pm CET.
UK – customs tariffs after Brexit as from 1 of January 2021
During the current Brexit transition period, goods can still be shipped tariff free and without import and export formalities from the EU mainland to the UK and vice versa. After the transition period, scheduled for 1 January 2021, EU – UK trade will be subject to import and export formalities and the UK will set its own customs tariffs. The UK has now announced what these tariffs will be.
UK – import duty and import VAT payments due 15 April 2020
The UK tax authority, HMRC, has announced that businesses which will struggle to meet deferred import duty and import VAT payments due on 15 April can apply to defer those payments. HMRC will be available over the Easter holiday weekend to deal with those requests. Affected businesses are urged not to wait until Tuesday 14 April, as HMRC anticipates delays following the Bank Holiday.
UK – THE UK DIGITAL SERVICES TAX: COMPLIANCE
HMRC has updated and published guidance in 5 areas on 1 April 2020 (clickable links):
- Check if you need to register for Digital Services Tax
- Pay your Digital Services Tax
- Register for Digital Services Tax and change your details
- Submit a Digital Services Tax return
- Work out your Digital Services Tax
Brexit – Intrastat obligation reporting remains even if Brexit takes place
Many of my clients who are registered for VAT purposes in the UK were thinking that one of the very few advantages of Brexit in the area of VAT is the fact that Intrastat will disappear. In the middle of October HMRC destroyed these hopes with the publication of the information that Intrastat will be surveyed even if Brexit takes place.Read More »
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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Michaela Merz 