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UK considers Brexit import VAT postponement

  • EU VAT
  • 11 December 2017 | Richard Asquith

UK considers Brexit import VAT postponement

Ahead of Brexit, the UK will review providing an import VAT deferment scheme to help relieve cash flow risks for importers. This could benefit an estimated 180,000 regular importing businesses

At present, as part of the EU VAT regime, EU importers into the UK do not have to pay UK VAT when entering the country. However, this will end on Brexit, with importers having to pay 20% UK VAT (and customs) to bring goods into the country. Goods imported into the UK from non-EU countries is liable to import VAT.

The UK has therefore announced in its Autumn Budget a plan to postpone cash payment of the import VAT, and have the importer declare the transaction through their UK VAT return.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.