ICAEW campaigned for VAT postponed accounting to be introduced in a no-deal Brexit scenario, but what does that mean?
VAT postponed accounting means that importers will be able to declare and recover import VAT in their next VAT return, rather than when their goods arrive at the UK border. To do this they will need to provide their VAT registration and EORI number on their customs declaration. If the UK leaves the EU without a deal, it will also be possible to use VAT postponed accounting when they import from the rest of the world.
If there is a deal, then postponed accounting may not be introduced.
ICAEW has produced a guide to navigate through the various sources of government guidance available to help understand the implications of Brexit. Postponed accounting is just one of many topics covered in the guide.
Further guidance on Brexit can also be found in ICAEW’s Brexit hub.