Ireland calls for Brexit import VAT deferment
- Jan 12, 2019 | Richard Asquith
An Irish accountancy body group has proposed introducing an import deferment scheme ahead of the UK’s potential no-deal Brexit on 29 March 2019.
At present, goods shipped from the UK to Ireland are exempted from customs duties and import VAT since the UK is part of the EU Customs Union and VAT regimes. However, in the case of the default no-deal Brexit, any goods moving from the UK to Ireland would be subject to both taxes – as with any UK exports to the remaining EU 27 states.
The Irish Consultative Committee of Accountancy Bodies has raised concerns on the resulting costs for Irish imports from the UK. The UK is Ireland’s largest trading partner with over €30 billion in annual trade. 19 other EU27 states have such postponement schemes which delays the declaring of the import VAT until the Irish importer’s next VAT return date, and reporting under the reverse charge mechanism. This means no import VAT cash payment is required.
The UK government has already committed to introducing a UK import accounting postponement scheme for imports in the event of a no-deal Brexit.
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