AccountingWEB's Brace for Brexit series has been at the forefront of ensuring readers are up to date with all the latest information about the new rules and regulations. But now businesses have been living with the rules since the start of the year, how good is your knowledge about the new VAT procedures?
In this article, we’ll tackle five VAT myths and rumours that have gathered momentum since the UK left the EU.
Myth 1: Postponed VAT Accounting (PVA) is a temporary facility that will end on 30 June 2021.
I am not sure how this rumour started but PVA is here to stay.
It is a complete winner for UK importers because the payment of VAT is deferred when goods arrive in GB from anywhere in the world, and is declared instead as a reverse charge entry on the importer’s next VAT return.
It is a cashflow no-brainer. I suspect the confusion with this date relates to the time when the need to make a full customs declaration for goods arriving from the EU can be delayed.
Myth 2: Applying the reverse charge for imported goods with PVA always produces a nil payment outcome on a VAT return.
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