The government has laid further sets of regulations to come into force in the event the UK leaves the EU without a deal.
The Finance Act 2011, Sch 23 (Data-gathering Powers) (Amendment) (EU Exit) Regulations, SI 2019/397, add ‘postal operators’ to the list of relevant data-holders from whom HMRC can require the provision of third-party data. This will enable HMRC to ensure overseas businesses sending goods to the UK in postal packets with a value of £135 or less comply with new import VAT rules coming into force after the UK leaves the EU.
The Value Added Tax (Place of Supply of Services) (Supplies of Electronic, Telecommunication and Broadcasting Services) (Amendment and Revocation) (EU Exit) Order, SI 2019/404, revokes the exception to the place of supply rules for supplies of digital services to EU consumers below an annual threshold of €10,000, introduced with effect from 1 January 2019 by SI 2018/1194. This exception allows supplies below the threshold to be treated as made in the UK, rather than where the consumer belongs. If the UK leaves the EU without a deal, the VAT MOSS scheme will cease to apply to UK businesses and these provisions will no longer be required.
The Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No 2) Regulations, SI 2019/408, will enable businesses to reclaim VAT incurred on ‘specified supplies’ of exempt financial services made to customers in the EU from a date to be appointed by Treasury order, in the event that the UK leaves the EU without a deal. This extends the existing treatment allowing businesses to reclaim VAT incurred on such supplies made only to customers outside the EU and is intended to bring the VAT treatment of supplies to EU customers into line with supplies to customers in the rest of the world after Brexit. The regulations also ensure that partial exemption special methods agreed before exit day will be interpreted in accordance with the revised VAT Specified Supplies Order after that date. This instrument replaces SI 2019/175, which will not now be commenced.
The Taxation (Cross-border Trade) Act 2018 (Appointed Days No 4 and Transitional Provisions) (Modification) (EU Exit) Regulations, SI 2019/429, appoint 4 March 2019 as the date on which anti-dumping and countervailing measures in the Act come into force (s 13, Sch 4 and 5), with functions to be performed by the Secretary of State until the Trade Remedies Authority is established. The date appointed for replacement of EU customs duties (Sch 7 para 1) will be immediately after the date the Treasury appoints for commencement of EU (Withdrawal) Act 2018, s 3 (incorporation of direct EU legislation).
The government has laid further sets of regulations to come into force in the event the UK leaves the EU without a deal.
The Finance Act 2011, Sch 23 (Data-gathering Powers) (Amendment) (EU Exit) Regulations, SI 2019/397, add ‘postal operators’ to the list of relevant data-holders from whom HMRC can require the provision of third-party data. This will enable HMRC to ensure overseas businesses sending goods to the UK in postal packets with a value of £135 or less comply with new import VAT rules coming into force after the UK leaves the EU.
The Value Added Tax (Place of Supply of Services) (Supplies of Electronic, Telecommunication and Broadcasting Services) (Amendment and Revocation) (EU Exit) Order, SI 2019/404, revokes the exception to the place of supply rules for supplies of digital services to EU consumers below an annual threshold of €10,000, introduced with effect from 1 January 2019 by SI 2018/1194. This exception allows supplies below the threshold to be treated as made in the UK, rather than where the consumer belongs. If the UK leaves the EU without a deal, the VAT MOSS scheme will cease to apply to UK businesses and these provisions will no longer be required.
The Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No 2) Regulations, SI 2019/408, will enable businesses to reclaim VAT incurred on ‘specified supplies’ of exempt financial services made to customers in the EU from a date to be appointed by Treasury order, in the event that the UK leaves the EU without a deal. This extends the existing treatment allowing businesses to reclaim VAT incurred on such supplies made only to customers outside the EU and is intended to bring the VAT treatment of supplies to EU customers into line with supplies to customers in the rest of the world after Brexit. The regulations also ensure that partial exemption special methods agreed before exit day will be interpreted in accordance with the revised VAT Specified Supplies Order after that date. This instrument replaces SI 2019/175, which will not now be commenced.
The Taxation (Cross-border Trade) Act 2018 (Appointed Days No 4 and Transitional Provisions) (Modification) (EU Exit) Regulations, SI 2019/429, appoint 4 March 2019 as the date on which anti-dumping and countervailing measures in the Act come into force (s 13, Sch 4 and 5), with functions to be performed by the Secretary of State until the Trade Remedies Authority is established. The date appointed for replacement of EU customs duties (Sch 7 para 1) will be immediately after the date the Treasury appoints for commencement of EU (Withdrawal) Act 2018, s 3 (incorporation of direct EU legislation).
