Changes reflecting the UK’s future as an independent trading nation.
The Chancellor has taken the opportunity to start building a process for exports and imports before UK enters into the negotiation phase with EU. Some of measures announced included:
Import duty variation
Section 15 of the Taxation (Cross-border Trade) Act 2018 will be amended by refining the criteria used to determine when the government may vary the amount of import duty in the context of an international trade dispute. This will allow the government to vary import duty where it considers this appropriate, having regard to relevant international agreements and obligations. The amendment will enable the UK to respond adequately to developments in the international trading system.
VAT postponed accounting
From 1 January 2021 postponed accounting for VAT will apply to all imports of goods, including from the EU. This will provide an important boost to those VAT registered UK businesses which are integrated in international supply chains as they adapt to the UK’s position as an independent trading nation.
A consultation is announced on the potential approach to duty and tax free goods policy for the transition period following the UK’s departure from the EU.
Article from ACCA In Practice