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HMRC issues Brexit impact assessment for VAT and services

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HMRC has issued an impact assessment covering the impact on businesses of amendments to existing VAT legislation and the introduction of transitional provisions for the supply of services between the UK and the EU if the UK leaves without a deal. In particular, it covers fund management services, the VAT mini one-stop-shop, the tour operators margin scheme, and specified supplies of financial services. Separate impact assessments were published in February for movements of goods and low-value parcels.

The instruments concerned are:

  • the Value Added Tax (Finance) (EU Exit) Order, SI 2019/43, which extends the exemption for management of special investment funds to the management of certain pension funds, and removes restrictions on qualifying assets for closed-ended collective investment undertakings;
  • the Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations, SI 2019/59, which includes amendments to the VAT Regulations 1995 removing provisions in relation to the VAT mini one-stop-shop;
  • the Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations, SI 2019/73, which aims to maintain a UK version of the tour operators margin scheme (TOMS) for UK tour operators, retaining some features of the EU TOMS;
  • the Taxation (Cross-border Trade) Act 2018 (Value Added Tax Transitional Provisions) (EU Exit) Regulations 2019, SI 2019/105, which deals with transitional issues and correction of errors for supplies begun before, and completing after, exit day; and
  • the Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No 2) Regulations, SI 2019/408, which will allow VAT on costs relating to supplies of exempt financial services to EU customers to be reclaimed in the same way as costs on supplies to non-EU customers.


Issue: 1438
Categories: News