Earlier this month HM Revenue & Customs published a report “Vat for businesses if there is no Brexit Deal”.
The current situation is that there are 4 freedoms guaranteed by membership of the EU, free movement of goods, services, capital and labour. This has been the position since January 1993.
What would happen if we had a ‘no deal’ position as we exit the EU?
UK Vat on Exports to the EU
Currently no Vat is collected on sales to other EU businesses.
In a ‘no deal’ situation, we would revert back to the pre-1973 situation. Formal procedures would be introduced, sales to EU countries will be subject to EU vat.
Vat Imports from the EU into the UK
Imports in a ‘No Deal’ situation would again mean that we would revert back a formal procedures. The situation is likely to be similar to the current rules for imports from Non EU countries.
Ctrl/Click on the link below for more information,