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Posted 14th December 2020

Postponed VAT accounting

After Brexit, you'll have to pay import VAT - but this can also be reclaimed.

Imports

From 1 January 2021, all imports will be subject to VAT in the destination country (UK), although most of the time it can be reclaimed by the person paying the VAT.  In order for a UK company to pay and claim back VAT, they will require their own VAT number.

If goods are placed in a customs special procedure/ facilitation (warehousing, inward processing etc), VAT can be paid/reclaimed when the goods are ready to move into free circulation – when the declaration is submitted to release those goods.

From 1 January 2021, UK VAT registered companies have the possibility of postponing the payment of import VAT. Click to see the Government details here.

 

Exports

From 1 January 2021, all exports will be subject to VAT in the destination country, although most of the time it can be reclaimed by the business paying the VAT.

In order for a UK company to pay and claim back VAT in Europe, they will require either their own European VAT number or the use of a third party – we can offer this through fiscal representation in some European countries.

Postponed VAT accounting is not possible in all countries. Click to see a list.

 

Delivered At Place Export

For example, sending a shipment from the UK to Poland, which clears in the destination country. Here, the Polish importer has responsibility for paying import VAT, duties and customs clearance.

Delivered Duty Paid Export

In the case of a DDP export, the import VAT would be paid and reclaimed by the fiscal representative.

 

If you are looking for advice and support please contact our in-house Brexperts on 0115 975 0400 or email brexit@baxterfreight.com today.