UK HMRC Posts Guidance on VAT After Brexit for Imports From Ireland

The United Kingdom’s HM Revenue & Customs issued a guidance document March 29 detailing value-added tax procedures for imports from Ireland should the U.K. leave the EU with no deal on April 12, as scheduled. Once the U.K. leaves the EU, import VAT will be due on goods moving from Ireland to Northern Ireland, whether those goods are ending their journey in Northern Ireland or are only moving through on the way to Great Britain, HMRC said.

Importers registered for VAT will need to account for import VAT on goods moving from Ireland to Northern Ireland on their normal period VAT return. “This is similar to how you account for VAT on such imports now,” HMRC said. For importers not registered for VAT, HMRC is developing a new online service to make accounting for import VAT “as simple as possible” by way of a quarterly import VAT return, HMRC said. “You will need to sign up for this service if the UK leaves the EU without a deal,” HMRC said.

VAT-unregistered importers do not need to register for VAT to start charging it on their sales, HMRC said. “If the UK leaves the EU without a deal, you will be able to submit a return and pay any import VAT due from 1 July 2019,” it said. To prepare for paying import VAT, importers should keep records of any goods moved from Ireland to Northern Ireland after 11 p.m. UK time April 12 (i.e., when Brexit is scheduled to occur), including receipts, records of transport costs directly associated with brining the goods into Northern Ireland, and records of any excise goods, HMRC said.