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VAT and other taxes

The UK Brexit transition period ends on 31 December 2020. This page brings together guidance and news from ICAEW, as well as externally-produced resources providing practical information on changes to VAT treatment, duties and other taxes.

Need to know

Latest news and insights

HMRC clarifies who can reclaim import VAT

5 October 2020: The methods for deferring import VAT might result in somebody other than the owner paying the VAT. HMRC’s latest guidance reiterates that only the owner can reclaim the VAT and use postponed accounting from 1 January 2021.

Changes to retail exports and duty-free shopping

17 September 2020: Duty-free shops will return from 1 January 2021, but international visitors to Great Britain will no longer be able to buy and take with them tax-free purchases from other retailers in the country as the VAT retail export scheme is scrapped.

A cash injection

In a nutshell, today’s Budget was one of the most extraordinary in recent memory. It marked a significant swing in economic policy, from austerity ‘coming to an end’, to a rate of borrow-and-spend that nobody would have imagined possible from a conservative government. It also marked a shift in more immediate priorities, from preparing for a post-Brexit Britain, to dealing with the challenges of Covid-19.

Guides and FAQs

Brexit checklist

Read our quick-start guide, outlining a variety of areas that could impact your business post Brexit, to help you prepare for when the transition period has ended.

Government guidance on Brexit

The UK government and the European Commission (EC) have published guidance to help citizens and businesses understand the potential implications of Brexit. This overview helps you navigate through this guidance. Government guidance is expected to continue to evolve.

EU law and business: Brexit implications

Much Brexit guidance is concerned mainly with trade in goods, but there are a variety of other areas of EU law that also affect business. Our guide gives you a framework to understand these implications. It will be particularly relevant for services businesses seeking to assess how they are impacted.

Taxation (Cross-border Trade) Act 2018

The Taxation (Cross-border Trade) Act 2018 received Royal Assent on 13 September 2018. The Act seeks to replace the current EU Union Customs Code and amend current UK VAT and excise duty laws in connection with the withdrawal of the UK from the EU.

TAXguide 21/17: The tax implications of Brexit

Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.