Brexit and Indirect Tax Survey
Towards the end of 2016, we conducted a survey on the likely indirect tax consequences of Brexit.
Unsurprisingly, there is a considerable spectrum of views regarding the wider issues around Brexit, which were reflected in some of the comments we received. From an indirect tax perspective, the responses indicate that, although there is still considerable uncertainty, the majority of businesses are already considering the indirect tax implications and impact of Brexit, largely driven by the indirect tax team themselves.
For those who have not given much consideration to these aspects, the main reason is a lack of information, with a number noting that this issue is not yet a priority.
The most significant areas of concern from an indirect tax perspective are changes to current VAT rules and interpretations, losing the ability to rely on EU VAT principles and litigation, and more complex supply chains for goods.
A significant majority of respondents consider that Brexit will make indirect tax more difficult to manage, and many anticipate an increase in the amount of customs duty payable (although a majority think it will make little difference to the amount of VAT payable).