Brexit is Back!
VAT will be changing from the 1 January 2021 when the UK leaves the EU.
Are your sales and purchases solely in the UK?
If you answered yes and if you don’t plan to expand overseas then the changes to VAT and overseas transactions should not affect you.
However, if you answered No (or you do intend to expand abroad) take a look at the questions below:
1. Do you intend to sell or export to the EU?
2. Do you import or purchase from the EU?
3. Do you import from the rest of the world?
If you have answered YES to any of questions 1 to 3, then how your business interacts with VAT on these supplies is going to change from the 1 January 2021. Customs duty arrangements will also change and may increase costs.
For many businesses, the impact may be as simple as accounting for VAT through your VAT return rather than paying at the time of import or operating a VAT deferment account to minimise cash flow effects. For others, however, the changes may have far-reaching effects. Either way, it is critical for your business to prepare for these changes well in advance of 1 January 2021.
If you have not already taken steps to account for these changes then please get in touch with our Tax Consultancy Team.
