From January 1, 2021 all goods shipped from the EU will be taxed with import VAT and there is a risk that British entrepreneurs would see this as a large claim on their working capital.
At present, these goods are still acquired intra-Community. The VAT reverse charge scheme applies to this, so in general no VAT has to be paid. Until now, the UK has not had a VAT reverse charge mechanism for imports.
However, such a reverse charge will be in place from 1 January 2021. This means that in most cases the VAT does not have to be paid on import. From 1 January 2021, entrepreneurs can declare VAT on import on their VAT return by means of the VAT reverse charge mechanism.
Source GlobalVATcompliance
Latest Posts in "United Kingdom"
- Understanding VAT: How It Works, Its Impact, and Options for Reform in the UK
- UK Tribunal Rules Locum Doctor Supplies via Agencies Are VAT Exempt for NHS Trusts
- VAT Rules for Workwear, Uniforms, and Staff Clothing: What Businesses Need to Know
- Understanding E-Invoicing: Benefits, Challenges, and the Future for UK Businesses and Government
- How Overseas Businesses Can Reclaim UK VAT: Eligibility, Deadlines, and Key Conditions
