VAT after Brexit
Friday, 14 February 2020
As the UK leaves the EU and enters a transitional period, we also move a step closer to being able to rewrite VAT exemptions and reliefs without having to follow overarching EU VAT legislation. This may give the UK the opportunity to deal with many of the seeming anomalies within the VAT system, raising questions such as:
- Will the rate of VAT on domestic fuel be reduced from 5% to 0%, as was suggested in the build up to the referendum?
- There’s been a long running debate around the enforced 5% rate of VAT on women’s sanitary products. Will this finally be reduced to 0%?
- Will we see hot pasties served without an additional 20% VAT?
- Is an eBook really the same as a paperback, or is an additional 20% VAT charge correct?
- Will the gingerbread man with three chocolate buttons finally be taxed at the same rate as the gingerbread man with two chocolate eyes?
- Should we abolish VAT altogether, and how would we make up the shortfall in tax collected?
Time will tell but, for the first time in a long time, it may be within the UK tax authority’s remit to decide.
Our VAT team has worked with a wide range of businesses in preparing for Brexit. We’d be pleased to talk to you about any issues or concerns you may have.
Call 0330 024 0888 or email firstname.lastname@example.org