December 04, 2020
Brexit was definitely going the affect VAT accounting. Probably there is no extension and the transition period will end on 31st December 2020. From 1 January 2021 we need to account for VAT as per the new guidance. Now the simplified rules will not be applicable for Great Britain. There is no border between Northern Ireland and Ireland. While Ireland is an EU member state and Northern Ireland is part of UK, it is going to be difficult for VAT accounting. Though NI is part of UK’s VAT system, EU VAT rules will still be applicable in NI. This leads to complication in VAT rules.
Below are the main points from the New VAT guidance:
1) If declared into a special customs procedure when they enter Northern Ireland or Great Britain.
2) If subject to domestic reverse charge.
3) If subject to an Onward Supply procedure.
For the above exceptions, the customer or importer is responsible for accounting for the VAT due.
If you have any issues with your VAT accounting. Doshi accountants will be happy to help you. We can file your VAT Online, guide you for your VAT return, and help you with all the matters of VAT accounting. We have been providing VAT return services all over UK for more than two decades. Contact us for best VAT return services.