Brexit - Tax

Transition Period

During the transition period (also known as the implementation period), EU law for VAT will continue for UK businesses. No VAT registered business will be required to pay VAT upfront when moving goods between Great Britain and Northern Ireland, and that accounting for VAT can continue to be done through postponed accounting and UK VAT returns. VAT simplification measures, including the mini one stop shop, is expected to remain available to UK firms. 

Backstop

If the ‘backstop arrangement’ is required there is likely to be some alignment with EU VAT rules for businesses in Northern Ireland in respect to the movement of cross-border trade in goods. However, Northern Ireland will remain part of the UK’s VAT area and no VAT registered business will be required to pay VAT upfront when moving goods between Great Britain and Northern Ireland. There is no reference as to whether the rest of the UK will be subject to EU VAT rules.

Post Transition / Backstop

Currently, there is no detail on the likely VAT regime for UK post-transition or backstop arrangement.

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