Brexit Update

Richard Staunton

Gerald Edelman

www.geraldedelman.com

With the negotiations still ongoing there are some certainties for VAT with effect from 1 January that non UK businesses need to be aware of.

1. Sale of goods to a consumer with a value of under £135

For goods with a value of less than £135, import VAT will not be collected. Instead HMRC will expect the non UK business to register for VAT and declare VAT on the sale.

Where that sale is through an online market place it will be the responsibility of the market place to ensure that UK VAT is declared.

2. Electronically Supplied services to consumers

EU businesses will no longer be able declare UK VAT on a MOSS return, and will be expected to register in the UK and declare VAT appropriately.

Richard Staunton, head of VAT at Gerald Edelman, says ‘there are a number of VAT issues with Brexit, particularly cross border supplies of goods from 1 January. Most of these are known and there is a PowerPoint presentation available on my firm’s website. However, the two issues above identified, particularly low value imports, do not seem to be that well known. Clients need to be made aware of the issues from next year if they either sell low value goods to customers or electronic supplies such as apps.

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