HMRC have issued an update relating to VAT registration for those businesses making preparations should the UK leave the EU without a deal.
“We recognise that it is important to certain UK businesses and their supply chains that EU businesses are VAT registered in the event of no deal being reached however, this needs to be balanced against the risks involved in permitting VAT registration to businesses when they do not currently meet the requirements.
We have updated our processes to allow businesses to submit advanced notification of VAT registration with the effective date being 1 November 2019. This will help businesses prepare should the UK leave EU without a deal and facilitates trade with as little disruption as possible.
From 27 September, EU businesses will be able to submit advanced notification of UK VAT registration where it is necessary for them to do so. VAT notice 700/1 has been updated to include specific guidance relating to the information that a business must include to ensure their notification is approved.
A VAT number will be issued but it will not be active until the UK leaves the EU without a deal. In the event the UK reaches an agreement with the EU to leave with a deal in place, then these registrations will be cancelled as they will be no longer required.”
If you have any queries do not hesitate to get in touch with Ruth Corkin on email@example.com or 01908713860