Thursday, August 13, 2020

Post-Brexit VAT rules look tough for exporters, claims BCC

A UK Government commitment to fully separate the country from the EU VAT regime doesn’t look pretty for the country’s exporters, according to the British Chambers of Commerce.

Adam Marshall, the organisation’s Director General, said: “This is the first view businesses have on what the VAT regime could be like after Brexit – and it doesn’t look pretty.

“A separate UK VAT system will create significant on-going costs for businesses trading across borders, unless special work-arounds are put in place. This change will pile pressure on Her Majesty’s Revenue and Customs, which is already contending with other facets of Brexit, plus the delivery of a new customs system and Making Tax Digital.

“Firms need to know – now, not in a year’s time – whether and how the Government intends to address the potential VAT bombshell facing businesses trading with the EU27 in future. Without a more generous deferment account scheme or postponed accounting, many companies face severe cash flow issues, big new administrative headaches, and a serious loss of competitiveness.”

Under the current system, firms trading with the EU report every quarter on what they have imported and exported, with a VAT bill calculated later. Without clear facilitations, the risk facing business is the need to pay VAT at the point of each cross-border transaction, creating a significant cash flow and competitiveness problem for many.

Adam added: “Businesses are hugely frustrated that politics and ideology – rather than real-world economic considerations – seem to be driving every twist and turn in the Brexit saga. For businesses, VAT isn’t some obscure technicality. A clear, easy-to-use VAT system is crucial for businesses to trade successfully with partners in Europe – and around the world.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

City solicitors raise £6,400 for Sheffield children’s charity

Almost £6,400 has been raised for Create a Dream Foundation (CADF), the Sheffield-based children’s charity, by city solicitors Wake Smith. Set up in 2017, the...

Private investor swoops for Ossett site in £2m deal

A private investor has snapped up a prominent industrial site in Ossett for more than £2 million. Olway Works on Healey Road was marketed by...

Related news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close