by Jason Gorringe, Tax-News.com, London
12 February 2019
Ireland’s Finance Minister, Paschal Donohoe, on February 6, 2018, confirmed that the Government proposes to introduce a system of postponed accounting for VAT should there by a no-deal Brexit.
This means that VAT-registered businesses importing goods from the UK will be able to account for import VAT on their VAT return, rather than having to pay import VAT on or soon after the time that the goods arrive at the Irish border.
The measure is intended to alleviate the cash-flow impact on businesses as a result of the UK leaving the EU and the consequent requirement that businesses should pay VAT at the point of import, rather than at the time they file their bimonthly VAT returns.
Donohoe said: “I believe this in an important measure and will go some way towards alleviating the cash flow impact on business as a result of the UK withdrawing from the EU.”
The Government said that while the introduction of the scheme will be provided to all traders for a period, to alleviate the immediate cash flow issues arising from Brexit, continued qualification for postponed accounting will depend on Revenue authorization from a later date to be agreed.