As you may have seen, on 13 July 2020, the UK Government published the Border Operating Model which provides guidance on how the customs border for trade between the EU and Great Britain will work following the end of the Brexit transition period of 31 December 2020
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.
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.
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.
The UK has just announced a new UK VAT zero-rate effective from 1 May 2020 until 31 July 2020 for PPE.
https://www.legislation.gov.uk/uksi/2020/458/article/4/made
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.
Find out how to pay no import duty and VAT on protective equipment, relevant medical devices or equipment brought into the UK from non-EU countries during the coronavirus (COVID-19) outbreak.
Find more information on the topic by clicking the link below:
HMRC has updated and published guidance in 5 areas on 1 April 2020 (clickable links):
Find out how to pay no import duty and VAT on protective equipment, relevant medical devices or equipment brought into the UK from non-EU countries during the coronavirus (COVID-19) outbreak.
The UK’s departure from the EU – BREXIT – took effect on 31 January 2020 under the terms of the Withdrawal Agreement agreed with the EU in October 2019. As a consequence, the UK has left the political institutions of the EU and entered a transition period. During this transition period (until 31 December 2020), EU regulations will in principle continue to apply in the UK. In the course of the next months the UK government and the EU will negotiate a comprehensive trade deal.
The BREXIT may have an impact on the treaty clearance for payments between Switzerland and the UK and puts treaty claims at risk based on the Swiss-US DTT:
Payments from the UK to Switzerland / from Switzerland to UK: replace 823C with 823B
PwC Switzerland ITX
Michaela Merz 