With the Brexit deadline just a few months away, HMRC has issued a statement about what will happen if no trade deal has been agreed with the EU.
The statement includes recommended steps that you should consider taking before the March deadline. One of them is to acquire software or an agent to handle your import and export documents. However, if you already trade with non-EU countries, your current procedures just need to be extended to EU trade.
TAX TIP
Our advice is to prepare on the assumption that no deal will be in place by the March deadline. Generally, a no-deal outcome will mean that trading procedures with EU countries will be the same as trading with non-EU countries. Therefore, instead of having to pay VAT when the goods arrive in the UK, you will have to pay it through your VAT Return.
If you are in the holiday business, you should keep an eye on industry publications for changes to the tour operations margin scheme.
VAT Issues
You will no longer need to produce EC Sales list or register for VAT MOSS in EU states you trade in. The low value consignment relief for parcels arriving from outside the UK containing goods up to £135 will also be abolished and replaced with a system to collect VAT from the exporter.