Karen O'Neill, Indirect Tax Senior Manager at KPMG UK: 'As of 1 January the same transaction can be considered an "export" from the EU. The seller can do this transaction at the zero rate as long as they adhere to the normal rules. Currently this trade would be reported as a "dispatch" from the EU.
Complete radio silence registration#
Could the Brexit lead to additional VAT registration obligations and could it lead to sticking VAT costs? This is a particular problem for companies wishing to deliver to their UK customers on Deliver Duty Paid inco-terms, where title and ownership remain with the seller until the goods are delivered in the UK. Until now, the focus on indirect taxes has mainly been on customs and how that will affect business.
That increases the pressure to come to a deal'.
Everyone knows that Boris Johnson has a good relationship with President Donald Trump. If there is a no-deal, the UK will find itself in an isolated position. According to Sarson, ‘a possible election victory for Joe Biden in the American presidential elections also plays a role in the background. For example, the UK seems to be winning on fisheries, but is making concessions on the issues of government support and level playing field’. Sarson: 'Sounds are coming out from the government making it clear to the people that concessions are being made. There is no guarantee, but I see the chances of a deal increasing'. I do expect progress to have been made in the negotiations.
Kanters notes ‘that there is a kind of radio silence after the negotiations were broken off earlier. Tim Sarson, Value Chain Management Partner at KPMG UK, and Leon Kanters, Brexit specialist at KPMG, think they know what the status of the Brexit negotiations is. Now that 1 January 2021 is fast approaching and there is still no 'deal', the tension is increasing in the UK. What will the Brexit mean for IT systems, VAT or business travel? The chances of a Brexit deal are increasing, despite the complete radio silence surrounding the negotiations between the EU and the UK.
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