“BUSINESS AS USUAL JIM, BUT NOT AS WE KNOW IT…”
If you recognise this catchphrase, you’re probably old enough to remember the UK joining the EU. Well, the time is here… After years of umming and ahing, the Brexit loop has broken. And we’re actually leaving.
IS BREXIT GOING TO CHANGE ANYTHING IN VAT?
Probably not. And we’ve got proof. You should have received a letter from HMRC by now confirming the UK is entering a transition period until the end of the year. If you’ve binned it (likely), then here it is.
We’ve looked at all the geeky VAT stuff (it’s what we do best), and our CP message is this: 2020 is BUSINESS AS USUAL.
Come 2021, unless a trade agreement is entered into, the UK’s import and export procedures will revert to standard WTO rules. This will lead to material changes to your VAT and customs duty accounting. And we’ll support you with that closer to the time.
SUPPLY CHAIN REVIEW
We’ve been spending a lot of time with clients reviewing their supply chain. That’s because by 2021, the day-to-day admin side of VAT might not be too big a problem to solve, but you really need to understand the impact on your supply chain.
You need to understand the resulting VAT and Customs Duty costs, and where your VAT liabilities and Customs Duties sit. And if you’re playing around with your supply chain, you need to make sure you’re not caught by wider regulatory blockers, such as labelling requirements.
Our Supply Chain Review will give you all that, and it will confirm your supply chain is fit for purpose. After years of Brexit nonsense, we hope that’s music to your ears. Because it certainly is to ours.
CHRISTMAS STUFFING
Finally, don’t forget about the EU VAT changes that are now in law on the movement of goods into and around the EU – the “Quick Fixes”. You probably missed them if you were still recovering from Christmas lunch, and you might not be VAT compliant if that’s the case. So, have a look at our guide, get in touch, and make sure it’s only the turkey that got stuffed this Christmas.
