How to settle VAT in Great Britain after Brexit?

​The UK is changing administrative and legal structures after Brexit. For thousands of Poles this complicates the situation and makes it more complicated to wade through new regulations, guidelines, searching for changes related to the method of settlement, VAT returns.

The UK is changing administrative and legal structures after Brexit. For thousands of Poles this complicates the situation and makes it more complicated to wade through new regulations, guidelines, searching for changes related to the method of settlement, VAT returns. The key question becomes How to account for VAT in the UK after Brexit? The Ministry of Finance of the United Kingdom has made clarifications regarding the VAT refund for foreigners. This is the so-called TAX FREE procedure, which is effective from 1 January 2021.

VAT refund on goods purchased and exports in personal luggage. A person travelling to the UK who has made a purchase within the EU countries and is resident in the UK is treated as a third country national. It follows that he is entitled to a full refund of the purchase price he made. Please note that the purchased goods must be taken outside the EU countries in the personal luggage of the person travelling. In order to claim a refund, proof of exportation of the goods is required, in accordance with the laws of the Member States, depending on the country from which the goods were actually exported. Please note that Travellers who have their permanent residence in the territory of Northern Ireland, which under the provisions of the Protocol on Ireland and Northern Ireland is treated as a Member State of the EU, cannot benefit from the TAX FREE procedure.

Travellers resident in the UK can also reclaim VAT on goods bought and exported outside the EU. The seller will be able to apply the 0% VAT rate to sales made to such a traveller. How has Brexit affected VAT settlements? They are most affected by the change of vendor, have to carry out the customs procedure of imported goods and necessarily settle the VAT in the UK. This means higher selling costs, longer lead times for sold goods. We are dealing with the export and import of goods, not with the internal market of the European Union as before.

For example, changes to trade in imported non-controlled goods you will have 6 months from the date the goods arrive in the UK to make a customs declaration, pay duty and import VAT. The UK also left the Customs Union at the end of 2020. As a result, all goods purchased in the UK require customs declarations and are subject to the relevant tariffs. Summary

If you still don't know how to account for VAT in the UK under the new rules, something is unclear to you, then don't despair. Even though there has been a change, you still have the right to cast and I'm sure you can handle it!

For more information, visit the website: europe-tax.com

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