Brexit. Completing your VAT return post Brexit

Post Brexit changes to filing in your VAT return

There have been a number of changes to accounting for VAT now that the transition period has ended. We’ve prepared this summary to help you to account for it correctly on your VAT return.

From 1 January 2021 you will need to make changes to how you complete your VAT return. If your VAT return period straddles this date, for periods ending on 31 January 2021 or 28 February 2021, you will need to split the return and prepare the first part under the old rules and the second part under the new rules.

Postponed VAT accounting

If you have chosen to account for import VAT on your VAT return, under the postponed VAT rules, you will need details of the imports to be included in the return. This will include:-

• Any customs entries you have made in your own records
• Copies of your monthly postponed import VAT statement, when available

Unless you have delayed your custom declaration, each statement will show the total import VAT postponed for the previous month. Your statements will become available to view in the first half of each month.

You will only be able to access a statement for 6 months from the date it is published, so you must download and keep a copy of each statement in your records.

How to complete your VAT return

The following changes are required to account for import VAT under the postponed VAT accounting:-

Box 1

Include the VAT due in this period on imports accounted for through postponed VAT accounting. You’ll be able to get this information from your online monthly statement, or you must estimate the amount if you do not have a statement and have delayed your customs declaration.

Box 4

Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting. You must estimate the amount if you do not have a statement and have delayed your customs declaration.

Box 7

Include the total value of all imports of goods in this period, not including any VAT.

Other changes to the VAT return as a result of Brexit are as follows:-

Box 2

From 1 January 2021 you will only be allowed to make acquisitions of goods from EU member states if your business is based in Northern Ireland.

This box is now therefore VAT due in the period on acquisitions of goods made in Northern Ireland from EU member states.

For acquisitions you should show the VAT due on all goods and related costs bought from VAT-registered suppliers in EU member states.

You may be entitled to reclaim this amount as input within Box 4.

Box 4

Include the amount of VAT reclaimed on acquisitions as declared in Box 2 subject to rules for reclaiming input VAT.

Box 8

Up to 31 December 2020

The total value of all supplies of goods to EU member states and directly related costs, excluding VAT, made on or before 31 December 2020. This must include the value of any goods dispatched from the UK to a destination in an EU member state, even if no actual sale is involved or the sale is being invoiced to a person outside the EU.

From 1 January 2021

The total value of all supplies of goods from Northern Ireland to EU member states and directly related costs, excluding VAT made from 1 January 2021. This must include the value of any goods dispatched from Northern Ireland to a destination in an EU member state, even if no actual sale is involved or the sale is being invoiced to a person located outside the EU.

Figures entered in this box must also be included in box 6.

Box 9

Up to 31 December 2020

The total value of all acquisitions of goods and related costs, excluding VAT, from VAT-registered suppliers in EU member states to the UK made on or before 31 December 2020.

From 1 January 2021

The total value of all acquisitions of goods and related costs, excluding VAT from VAT-registered suppliers in EU member states to Northern Ireland from 1 January 2021.

Figures entered in this box must also be included in box 7.

EC Sales Lists

For the export of goods from Great Britain or the supply of services from Great Britain and Northern Ireland made to EU businesses on or after 1 January 2021, you will not need to submit EC sales Lists.

Businesses have until 21 January 2021 to submit EC Sales Lists for sales made on or before 31 December 2020.

You’ll still need to submit EC Sales List if you sell goods from Northern Ireland to EU VAT-registered customers.

Our specialist Brexit team are here to help with all your post Brexit VAT queries, so please get in touch.

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