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UK VAT system after Brexit (Part 4)


Surely many have heard and experienced the English approaching certain issues in a strange way; This is no different in the VAT system. Let me now introduce some of these.

So far in the series of articles on the UK VAT system we have seen major changes in the most common type of income, but at the end of the series I present some British features. Many have heard and experienced that Englishmen approach certain issues in a particular way, and I will introduce some of them to the interested reader.

The first such feature is that in the UK, by January 1, 2021, if a taxable person imports goods from a third country, that is, even the largest taxable persons will have to pay customs duty for the first time. Withdrawal after receipt of tax receipt. Reverse taxation was available after Brexit came into force, but unlike the domestic practice, it is not only the ‘privilege’ of the highly efficient taxpayer, but all taxpayers can take advantage of this opportunity. The tax authority publishes a monthly report of the amount of VAT payable on imported goods, which can be downloaded online from the tax authority. Of course, this certificate only covers transactions that do not come to Northern Ireland. During the first few months, when the same import transaction was included in the multi-month certificate, it was very difficult to get started with this system, so customers or their service providers had to be very careful in previous months transactions. Reporting.

It is worth noting in a few lines the frequency of VAT returns and the deadline for their submission. In the UK, you can file VAT income on a monthly, quarterly or annual basis. The deadline for submitting a return is always the seventh day of the second month following the return period, which, if it is a weekend, is the last working day of the week. However, large taxpayers have to wait for a shorter period of time because they do not receive an extra seven days, but must file income within the last day of the month following the return period. Since these taxpayers usually file quarterly income, they have to file two advances within a quarter and then file the difference to the tax officer when filing the income. The advance is levied by the tax authority on the basis of tax liability for the year prior to one year. The British are interested in the fact that a quarter can not only be a quarter, but a quarter can also be a slippery quarter, i.e. the quarter can vary from a normal calendar quarter to two months, i.e. there is a quarter to February. It is April or March-May.

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In general, the telephone service of the tax authority can be said to be very difficult to access, and even the information available from writers who appear to be often unprepared when asked various questions can be said to be unreliable. It is very difficult to contact an administrator on the phone anyway, because when we call the tax officer we do not use the buttons to select the case in which we want to ask for information, but to say in a few words what we are up to. Are calling. Whether we are very narrow-minded or word of mouth, the main search engine can go to interesting places in the company of the tax authority.

Finally, a British feature is that self-monitoring is not possible in the UK. It is not necessary to overwrite the previous numbers and re-file the income with the correct numbers, but you must inform the tax officer that we made a mistake during the periodic return. The cause of the error and its consequences must be presented in detail, and of course accurate figures must be developed, which must be provided to the tax authority, which will determine the amount of the penalty individually and collectively. Those who have made a mistake should explain in detail what steps can be taken to prevent such mistakes in the future.

The author, Peter Molnar, is an independent tax consultant.