- UK will continue to operate a VAT system, but the Government will keep the UK out of the EU VAT system and any form of Customs union. This means that additional VAT administration will be required for EU-UK imports and exports from January 2021;
- No increase in VAT rates are planned;
- VAT on sanitary products is likely to be abolished;
- Import VAT may become payable by UK registered businesses on supplies from EU; this is reclaimable;
- EU customers of UK businesses may be required to pay Import VAT on supplies made to them;
- For businesses established in the UK but incur VAT in an EU member state where they are not registered, the procedure is likely to change for reclaiming VAT refunds;
- The converse is also likely: for businesses incurring VAT in the UK but where their place of establishment is in the EU, a different procedure will apply to reclaim a refund of VAT.
Source Martyn Redman
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