03 September 2018 
Amanda Darley, Head of Operations and Engagement
HMRC has issued a guidance document on how VAT will operate in the event of a no-deal Brexit, and a technical note specifically about trading with the EU. Universities that buy from, sell to or move goods between EU member states should review these documents, as should universities who currently import goods from outside the EU. Among other things the guidance states:
'If the UK leaves the EU without an agreement, the government will introduce postponed accounting for import VAT on goods brought into the UK. This means that UK VAT registered businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the UK border. This will apply both to imports from the EU and non-EU countries.'
So there will be a change for imports from outside the EU as well.
In terms of exports to the EU, the guidance states:
'If the UK leaves the EU without an agreement, VAT registered UK businesses will continue to be able to zero-rate sales of goods to EU businesses but will not be required to complete EC sales lists.
As UK VAT registered businesses will not be required to complete an EC sales list, there will be changes to how these sales are recorded. Those UK businesses exporting goods to EU businesses will need to retain evidence to prove that goods have left the UK, to support the zero-rating of the supply. Most businesses already maintain this evidence as part of current processes and the required evidence will be similar to that currently required for exports to non-EU countries with any differences to be communicated in due course.'
The guidance also covers various other situations, including (but not limited to) the MOSS regime, claiming VAT refunds from EU countries, validating EU VAT numbers, and imports/exports between Northern Ireland and Ireland.
