The media attention after the end of the Brexit transition period has quite rightly focused on the practical difficulties in transporting goods cross-border and the additional paperwork for businesses as the most tangible evidence of Brexit. Less apparent are the VAT consequences that flow from the UK becoming a non-EU Member State, or “third country”, for EU VAT purposes with Northern Ireland (NI) effectively remaining in the EU for transactions involving goods but not services. The greatest impact will be on the VAT treatment of supplies of goods that move between Ireland and the UK. In this article I consider the main VAT Brexit issues, including the VAT treatment of supplies of goods and services, the non-application of certain VAT simplifications, VAT on imports and recovery of VAT.
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