UK considers Brexit import VAT postponement
Ahead of Brexit, the UK will review providing an import VAT deferment scheme to help relieve cash flow risks for importers. This could benefit an estimated 180,000 regular importing businesses
At present, as part of the EU VAT regime, EU importers into the UK do not have to pay UK VAT when entering the country. However, this will end on Brexit, with importers having to pay 20% UK VAT (and customs) to bring goods into the country. Goods imported into the UK from non-EU countries is liable to import VAT.
The UK has therefore announced in its Autumn Budget a plan to postpone cash payment of the import VAT, and have the importer declare the transaction through their UK VAT return.
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