Deloitte comments on the ‘no-deal’ Brexit notice regarding VAT has been saved
Deloitte comments on the ‘no-deal’ Brexit notice regarding VAT
24 August 2018
Yesterday, the government published the first batch of technical notices informing people and businesses on how to prepare in the event of a no deal Brexit.
Daniel Lyons, Head of the Tax Policy Group at Deloitte, comments on the VAT related notice:
“The confirmations that we have include the expected announcement that postponed accounting for import VAT will apply both to imports from the EU and the rest of the world. It was confirmed that Low Value Consignment Relief will no longer apply to parcels with a value of £15 or less. There will however be a new, innovative “technology based solution” so that overseas businesses sending parcels into the UK with a value of £135 or less, will be able to account for VAT online at the point of purchase.
“The VAT notice also gave confirmation that UK suppliers of digital services to end consumers will no longer be able to use the mini one stop shop in the UK – instead they will have to register in another EU member state. Further to this, UK businesses will no longer be able to use the EU VAT Refund System (the “Portal”), and as a result will have to use the same process as non-EU members. This process is thought to be slower and more inconvenient than the fast track EU portal service. “
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.