The Institute of Export & International Trade has launched a suite of services to advise UK companies on new VAT procedures when trading with EU countries.
Until the end of transition on 31 December 2020, the UK was part of the EU’s VAT regime with a common set of VAT rules, with no requirement for UK businesses to register for VAT in each EU country.
VAT changes post-transition
Post-transition, while domestic VAT rules remain the same, VAT rules relating to imports and exports to and from the EU have changed.
Chief among these changes is that VAT is payable upon import for goods valued over £135.
The UK government has introduced the postponed VAT payment system to allow firms to import goods while accounting for VAT on their next VAT return.
The IOE&IT has launched the VAT Advisory Pathway, a suite of support services for specific VAT issues, ranging from basic advice to one-day courses and a referral to an accountancy practice.
Members of the IOE&IT can avail of free advice and more involved consultancy at preferential rates (see list, below).
“We’ve launched this package in response to the huge amount of queries the IOE&IT has received on newly-complex EU VAT rules since 1 January,” said Sam Pileggi, IOE&IT director of marketing. “One VAT webinar we ran received hundreds of enquiries from delegates, so clearly it’s a key topic that is perplexing traders.”
The VAT Advisory Pathway ranges from entry-level help via the IOE&IT’s Technical Helpline to a half-hour or hour-long surgery to a bespoke VAT Healthcheck.
Finally, companies get can referred to the IOE&IT’s trusted VAT accountancy partner for contractual advice and representation in the countries they are trading with.
“The good thing for IOE&IT members is that most of these services are free and for others they get at a preferential rate as a member benefit,” Pileggi said.
VAT Advisory Pathway: range of services
1. Technical Helpdesk
- Basic, initial VAT queries handled
- More technical areas outlined for further examination
- Offered exclusively to some IOE&IT member categories as a free-of-charge benefit
2. International trade surgery
- Preferential rate for IOE&IT business members
- Available as either a 30-minute or 1-hour surgery call
- 30-minute surgery: £100+VAT for members, £150+VAT for non-members;
- 1-hour surgery: £200+VAT for members, £300+VAT for non-members
- SME Brexit Support Funding is currently available to cover the cost of this service.
3. One-day training course
- Preferential rate to IOE&IT members
- Guides learners through the fundamentals of cross-border VAT relative to the EU and Rest of World trade
- Learning outcomes include:
- VAT implications arising from different terms of sale under Incoterms® 2020
- VAT obligations for GB exporters
- VAT arrangements in different EU countries (trade in goods and trade in services
- Reclaiming VAT payments in the EU
- VAT arrangements for Rest of World trade
- £299+VAT for members, £399+VAT for non-members
- SME Brexit Support Funding is currently available to cover the cost of this service
4. IOE&IT consultancy and VAT Healthcheck
- An exploration into the trading specifics of your business, with advice compliant with HMRC official guidance
- Full support of risk management
- UK and international best practice compliance measures
4.2 VAT Healthchecks
- Annual VAT Healthchecks with the IOE&IT
- Allow ample time ahead of financial reporting year-end to organise
- On-site review with an international VAT specialist assessing your VAT obligations and liabilities
- Healthcheck followed by detailed report including recommendations
- Cost per day: £2250+VAT for members, £2450+VAT for non-members
- Duration depending upon your business’ requirements
- SME Brexit Support Funding is currently available to cover some of the cost of this service
5. Referral to IOE&IT’s trusted VAT partner
- Specifically for fiscal representation requirements or where the IOE&IT is not able to help through the support services listed above