Brexit: The new VAT treatment and whom it applies to
The UK has set forth VAT rules for the sale of goods, just concurrently with the culmination of the Brexit transition period.
Effective from January 1st, 2021, UK VAT is now applicable for the sale of goods by foreign taxable persons.
UK businesses who have utilized a deferral for VAT payments between March to June 20, may now be eligible to repay the deferred payments in reduced and interest-free payments over an 11 month period as opposed to paying it all in a lump sum payment by March 2021.
This reduced payments option is available by setting up a plan and payments can be paid until the end of March 2022. For eligible businesses, the lump sum payment option can still be used on or before March 31, 2021.
All businesses must check and verify if the VAT registration and any other operational obligations are applicable for doing business in the UK. Additional tax compliances and liability modifications may apply. UK businesses now have an expanded timeframe to repay their VAT dues.
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