UK - Brexit ‘no-deal’

In the case of a no-deal Brexit, HMRC, the UK tax authority, is, we understand, working on a number of procedures requiring UK legislative changes to ensure that VAT continues to be properly collected once the UK leaves the EU. The measures may include, for example, legislation to allow the  UK to collect VAT on imports of postal packets valued at less than £135 (in line with Customs values). This measure is essentially to ensure that in the case of a no-deal Brexit the existing relief for low valued goods would not create significant distortions of competition with UK based retailers. This new regime, in the cse of a ‘no-deal’ would be introduced in March 2019, ie two years before a similar EU regime.

UK - Guidance on the changes to 13th Directive claim “Certificates of Status”

Revenue & Customs Brief 12/18 – HMRC published guidance on the changes to 13th Directive claims and the 'Certificates of Status', including a 3 month extension for certificates for 2018 claims (though not for the claim itself) to be obtained.

HMRC has published Revenue & Customs Brief 12/18 that details how to deal with the unintended consequences of their policy change on certificates of status (COS) in May this year. HMRC has become much stricter on the details required on a COS as set out in VAT Regulations 1995, resulting in several countries’ COS becoming rejected, including the 6166 produced by the IRS in the USA. As the policy was not publicised, this has resulted in many claimants submitting appeals. The IVA has been very heavily involved in the discussions with HMRC and agreeing the revised position. The IVA will have regular meetings with HMRC on this and other issues to optimise the UK’s VAT mechanisms going forward.

The brief sets out the position for rejected 16/17 claims and a 3 month extension (to 31 March 2019) for businesses to obtain a correct format COS for 2018 (17/18) claims. However, please note that there is no extension for the 13th directive claim itself, which still had to be lodged with HMRC by 31 December 2018 . Full details about the extension and claims are set out in the brief: 

Link: https://www.gov.uk/government/publications/revenue-and-customs-brief-12-2018-refunds-of-vat-in-the-uk-for-non-eu-businesses/revenue-and-customs-brief-12-2018-refunds-of-vat-in-the-uk-for-non-eu-businesses

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IVA Meeting with HMRC

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Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.