VAT changes after Brexit

[meridian]

Not sure why this is news, surely the impact of VAT changes and bond/duty was part of the excruciatingly detailed impact assessments?

https://www.theguardian.com/politics...xit-uk-imports

In a briefing sent to MPs, the British Retail Consortium, which represents 70% of the UK retail industry, said: “If the bill becomes law without any commitment to inclusion within the EU VAT area, UK businesses will become liable to pay upfront import VAT on goods being imported from the EU-27 for the first time.”

It added: “Liability for upfront import VAT will create additional cashflow burdens for companies, as well as additional processing time at ports and border entry points attached to the customs process. Mitigation measures could include companies instituting a revolving credit facility, or utilising import VAT deferment reliefs.

“Both measures require companies having to take out costly bank or insurance-backed guarantees, so would increase the costs of importing goods from the EU.”

[meridian]

VAT changes after Brexit

And the same story in the Observer.

The Tory chair of the all-party Treasury select committee, Nicky Morgan, said the committee would launch an urgent investigation. She also said she would be writing to the head of HM Revenue and Customs to see what contingency plans were being made to avoid hitting UK firms.

This is UK legislation enacted by the U.K. parliament, which HMRC is duty-bound to uphold. Why would HMRC need to design and implement any contingency plans to avoid this hitting U.K. firms??!

With incompetence like this, Nicky Morgan could find herself promoted to the cabinet soon....

[Paddy]

It will be even more disastrous for small business. In the pre-single-market days I would regularly hire a van and export a load to Europe and bring back a load to sell in the UK. Like all importers, I had to appoint an agent to deal with the paperwork at the ports (usually Dover). It would take about a day and a half to clear customs. Vat and any Duty would have to be paid up front. Even leaving the UK was a pain because there were intervention taxes that had to be paid on some goods leaving the UK.

These days, business is much more competitive than those days, it will not be profitable for small business to bring in their own goods.

A friend local of mine shut down his UK delicatessen and moved to Sofia because he was so disgruntled with UK regulations a red tape . Three years on, he wished he had moved earlier; he no longer dreads getting brown envelops in the post with some regulatory burden.

The UK is once again the sick man of Europe.

[Platypus]

Now he's in Sofia, assumably the flow of brown envelopes is now from him to whoever demands with menaces?

[tomtomagain]

Best countries for doing business.

Bulgaria's at #42.

Scrolled down the list, couldn't see the UK. Must have missed it.

[WTFH]

Best countries for doing business.

Bulgaria's at #42.

Scrolled down the list, couldn't see the UK. Must have missed it.

What has that list got to do with small businesses and VAT?

[tomtomagain]

What has that list got to do with small businesses and VAT?

Three years on, he wished he had moved earlier; he no longer dreads getting brown envelops in the post with some regulatory burden.

From the tone of the earlier post, it seemed to me to be about regulation, rules and taxes so I was widening the debate.

The Forbes survey indicates that the UK is the #1 country in the world to do business, whereas Bulgaria is down at #42.

If you want me to restrict comments to VAT and BREXIT I will simply state the obvious:

The reports are just more noise, puffed up by the usual anti-BREXIT media organisations. Until such time as the changes become law then I don't see that there is much to comment on.

[WTFH]

The Forbes survey indicates that the UK is the #1 country in the world to do business, whereas Bulgaria is down at #42.

How did Forbes come up with that result?
What sort of business, etc?

All I see is a chart with various values in it but no correlation between them

[NotAllThere]

...
The reports are just more noise, puffed up by the usual anti-BREXIT media organisations.

So in your estimation, the 70% of retailers represented by the British Retail Consortium are anti-BREXIT media organisations?

[tomtomagain]

How did Forbes come up with that result?

Here