As the date the UK is set to leave the EU looms, the government is publishing legislation to make consequential and transitional amendments to VAT legislation, to cope with the changes that will be needed when the UK leaves the EU.

In particular we note the following:

  •  The Taxation (Cross-border Trade) Act 2018 (Appointed day No 3) and the Value Added Tax (Postal Packets and Amendment) (EU Exit) Regulations (Appointed Day) (EU Exit) Regulations, SI 2019/104. A copy of the legislation can be viewed here
  •  The Taxation (Cross-border Trade) Act 2018 (Value Added Tax Transitional Provisions) (EU Exit) Regulations, SI 2019/105. This sets out transitional provisions to deal with certain issues arising from amendments made to VATA 1994 in connection with the UK’s withdrawal from the EU. These include: rules to ensure that VAT and import duty amendments in Pt 3 of the Act do not have effect in relation to supplies/acquisitions taking place, or removals commenced, before exit day; and references to inaccuracies or failures in relation to “section 55A statements” about the reverse charge on specified supplies will only include such statements due before exit day. The regulations will come into force on a date appointed by Treasury order in the event that the UK leaves the EU without a negotiated arrangement. A copy of the legislation can be viewed here
  •  The Value Added Tax (Finance) (EU Exit) Order 2019 (SI 2019/43). The purpose of the order is to remove inconsistencies between UK and EU law in relation to the VAT treatment of the management of pension funds and closed-ended collective investment undertakings. The changes are to come into force on the day on which the UK leaves the EU. A copy of the legislation can be viewed here
  •  The Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations 2019 which sets out amendments to the tour operators’ margin scheme. In the event of a no deal, the changes made by the regulations aim to apply the same rules to transactions between the UK and the EU as currently apply to transactions between the UK and non-EU countries. The regulations will come into force on such day of days as the Treasury by regulations appoint. A copy of the legislation can be viewed here.