If there is a “No-Deal” Brexit then there will be important changes to the VAT100 form. How many people actually understand what these changes are likely to be?
HMRC propose that Boxes 8 and 9 change to include the value of all exports (8) and all imports (9) of goods. excluding VAT. Box 4 will cover VAT reclaimed on all purchases (including any imports) and Box 2 will include VAT due on imports accounted for through postponed accounting.
So, there will be additional accounting adjustments to make as well because if businesses have a VAT period that straddles 31st October then they will need to account for VAT on the old basis up to 10.59pm on 31st October 2019 and on the new basis for the rest of the period.
Not a problem for those businesses that don’t import or export goods. However, for those businesses that do trade internationally in goods this is a factor they need to consider. For example, can their software handle this anomaly?
HMRC have released guidance of VAT returns in a no deal Brexit.
Read our guide on how to prepare for a No-Deal Brexit here
Are you wondering what these changes could mean for your business? The intricacies of VAT can be a complex and overwhelming area for business owners. Understanding the right VAT scheme for your business, and what is exempt for example can easily cause confusion.
Why not let the expert team at Avanti help you? We offer full bookkeeping and a handy VAT checking service, giving you confidence that your VAT returns are filed right first time, every time.
Give us a call (08000) 388 799 to see how we can help move you and your business forward.