The current update for HMRC (UK VAT OFFICE) on how import VAT on goods in the EU will be able to move if there is a Brexit no deal.
This is due to take place on the 29th of March 2019 if the UK leaves the EU, so any goods coming in from the EU will be responsible for 20% import VAT.
The launch of a Postponed Accounting Scheme which has been mentioned by HMRC which will enable importers to defer the VAT payment to their VAT return.
Through the reverse charge mechanism, VAT can be declared without a cash payment of the import VAT.
A scheme like those operated by 19 EU states. The scheme will apply to EU and non-EU imports. Non-VAT registered importers will need to pay the import VAT in order to have their goods cleared into the UK.
2 Ways to use the Postponed Accounting scheme for import VAT:
1. Importers will need an Economic Operator Registration and Identification (EORI number) for their import documentation.
This can be used through HMRC’s Customs Handling of Import and Export Freight (CHIEF) system which is an IT system.
2. VAT Number for customs declaration
In the next quarterly VAT return, (monthly for very large taxpayers) the import VAT value should be included in Box 2, with a matching negative in Box 4.
The value of the imports should be included in Box 9.