These simplifications are aimed at keeping goods moving. However, there is one main issue. The rules are written SOLELY for UK companies/businesses…
These simplifications are aimed at keeping goods moving. However, there is one main issue. The rules are written SOLELY for UK companies/businesses. However, some importers may not be UK companies, and some importers into the UK will be non-established businesses with UK VAT ID’s and EORIs. Hence there appear to be groups of taxpayers who are ignored.
The issue has been referred back to HMRC for comment.
However, the guidance on VAT, for example, looks solely at the position of UK businesses, and takes little account at the impact arising as a result of the loss of simplifications both for third parties undertaking business in the UK and for UK businesses undertaking business in the EU 27. We can expect significant problems from 29 March.
We have no guidance as to whether HMRC will treat errors with a “light touch”, but probably more prudent to assume that they will not. It would be good to hear from other member states as to how their tax authorities are likely to behave with “errors” because in all probability, there will be an awful lot of non-compliant UK and foreign businesses (mainly in the SME sector).
All publications on Brexit to date follow the official line from the UK Government that the UK will be leaving on 29 March 2019 and assume that there will be a “No Deal” Brexit.
The above information was kindly provided by Steve Botham from Covertax Chartered Tax Advisers, UK. If you need any further information you can contact Steve, email to: firstname.lastname@example.org.