Brexit: urging the government to stop the cost of changing the VAT regulations of British companies

0
293

The British government is under pressure to announce the impact of more than 130,000 rules in Britain that will take effect after Brexit in the UK, which will force them to pay VAT for the first time on all imports from the EU.

Nicky Morgan, the influential Treasury Department’s Conservative chairman, has called for an idea of ??how contingency planning can avoid the extra costs of changing the rules of a British company.

In a letter to Jon Thompson, head of HMRC, Morgan said Morgan must respond to a warning from the British Retail Consortium that businesses need to pay VAT before importing goods, creating huge cash flow problems. The BRC also fears that “handling time at ports and border points of entry during the customs process may increase.”
Morgan said: “As the actual situation of Brexit began to deteriorate, its tax impact has not yet been fully explored.

“Under the Tax (Cross-border Trade) Act, companies must pay value-added tax on imports of goods from the EU before they can freely circulate in the United Kingdom.

“I have sent a letter to HMRC requesting clarification of the costs of businesses and consumers caused by this Act, considering the options for reducing these costs, and the possibility of the UK participating in EU VAT as part of its end-state relations with the EU.”

Morgan withdrew from the previous comment, she will conduct an emergency investigation of the matter, saying she is more willing to wait for Thompson’s response to her letter.

Many labor and Conservative MPs and their colleagues think the only way to avoid a VAT rebate is to stay with the Customs Union or negotiate to stay in the EU VAT zone.

Prime Minister Philip Hammond admitted last year that businesses were facing delays and extra costs of imported goods and promised “to consider options for reducing the impact of any cash flow” in last year’s autumn budget.

HMRC has said it could design a new system that would allow companies to delay the import VAT payments, but this requires additional finance ministry funding.

LEAVE A REPLY

Please enter your comment!
Please enter your name here