Brexit will mean the border of the EU will change. In relation to VAT, this means ‘acquisition’ and ‘import’ will change their meanings.
The Taxation (Cross-border Trade) Bill s41 includes these specific provisions;
- Acquisition VAT will be abolished; and
- Goods leaving the EU and entering the UK will be called ‘imports.’
Of course, we do not know the date this change will take effect. But traders who regularly purchase goods from the continent will have to change their procedures.
And, what will happen to Box 2 of the VAT Return?
You can read the bill, and follow any changes here: https://services.parliament.uk/Bills/2017-19/taxationcrossbordertrade/documents.html
About Les Howard
Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.