Brexit deadline: Act now to comply with new tax regulations
Businesses trading between the UK and the EU must act now to ensure updates are made to their tax setup in time if they are to comply with new regulations set to come into effect on 1st January 2021.
With the UK due to leave the EU VAT regime, customs union and single market in just 58 days, transactions involving businesses in Great Britain or Northern Ireland are set to become more complex than they have been for decades.
That’s why we are holding an online Brexit workshop on Friday 6th November, during which we’ll discuss all the most important and urgent points, including:
- Differences between the current VAT regime and the incoming VAT regime.
- Geographical considerations between the UK, Northern Ireland and the European Union.
- Warehouses/new locations in Northern Ireland.
- Specific requirements of your tax system to adapt to new regulations.
- How Innovate Tax can update your tax solution to ensure compliance from 1st January 2021.
Whether you’re an existing Innovate Tax customer in need of support or a business simply seeking advice on the best route to post-Brexit VAT compliance, we’d love you to join us. Register now for either the 11.00 GMT webinar or the 17.00 GMT session.
What will change on 1st January?
The UK’s departure from the EU VAT regime will signify the end of a range of simplified regulations and processes designed to smooth trade between the UK and EU. As a result:
- The UK will no longer be tied to a minimum VAT rate of 15% as per the EU VAT Directive.
- The UK will assume control of its reduced VAT rates.
- All movements between the EU and the UK will become imports or exports (unless you are located in Northern Ireland).
Additionally, the UK leaving the customs union will result in:
- All goods moving between the UK and the EU will require customs declarations and could be subject to tariffs, depending on the outcome of trade talks between London and Brussels.
- Without a Free Trade Agreement, both sides will impose tariffs set by the World Trade Organisation.
How can we help?
These are just a small selection of the regulations due to change or be introduced, underlining the scale of the challenge facing businesses that do not have an accurate and updated automated tax determination solution in place.
To ensure your tax solution is primed for compliance once the new relationship between the UK and the EU kicks in, we recommend joining our webinar this week.
We can assist and advise you on the necessary changes to your tax configuration, whether you are an existing customer or not. Alternatively, contact us today to book a needs-based assessment of your current setup.