Committee chair asks for clarity on post-Brexit VAT
The chair of the Commons Treasury Committee has called for more clarity on what impact Brexit will have on VAT bills for firms importing goods from the EU.
Former Cabinet minister Nicky Morgan, who was a leading figure in the Remain campaign, has written to Her Majesty's Revenue and Customs (HMRC) to seek guidance on what will happen after Britain withdraws from the EU.
Mrs Morgan took the action because she said the Taxation (Cross-Border Trade) Bill currently going through Parliament could force firms to pay VAT upfront on goods imported from the EU.
The British Retail Consortium (BRC) has said the changes could create additional cash flow burdens for 130,000 companies, and has warned that the processing time at ports and border entry points attached to the customs process could increase.
Mrs Morgan said: "As the reality of Brexit begins to bite, its implications on tax are yet to be fully explored.
You may also want to watch:
"Under the Taxation (Cross-Border Trade) Bill, firms would have to pay VAT upfront on goods imported from the EU before they can be released into free circulation in the UK.
"The Government has already acknowledged that this would create an additional burden for businesses, and autumn Budget 2017 committed to 'look at options to mitigate any cash-flow impacts.'
- 1 Empty shelves are partly down to Brexit - but Leavers won't admit it
- 2 Why Bristol is the street art city
- 3 The Spanish village with the mythical blue lagoon
- 4 Boris Johnson enjoys splendid isolation
- 5 Has something shifted in sado-populist Britain?
- 6 Telling the truth is now the only sackable offence
- 7 A very nearly enchanted evening
- 8 What I learned by avoiding England and the Euros
- 9 Cost of Brexit is already 38 times more than the money set aside for levelling up
- 10 Priti Patel - the poster girl for our poisonous politics
"I have written to HMRC to seek clarification on the costs to businesses and consumers arising from this legislation, the options being considered to mitigate these costs, and the likelihood of the UK participating in the EU VAT area as part of its end-state relationship with the EU."
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.