Brexit Update -Temporary Arrangement For Advanced Notification Of VAT Registration

We would like to update you with some information we have received from HMRC relating to VAT registration for those businesses making preparations, should the UK leave the EU without a deal.

HMRC recognise that it is important to certain UK businesses and their supply chains, that EU businesses are VAT registered in the event of no-deal being reached, however, this needs to be balanced against the risks involved in permitting VAT registration to businesses when they do not currently meet the requirements.

HMRC have updated their processes to allow businesses to submit an advanced notification of VAT registration, with the effective date being 1 November 2019. This will help businesses prepare should the UK leave the EU without a deal and facilitates trade with as little disruption as possible.

As of 27 September, EU businesses are able to submit an advanced notification of UK VAT registration where it is necessary for them to do so. VAT notice 700/1 has been updated to include specific guidance relating to the information that a business must include to ensure their notification is approved.

A VAT number will be issued but it will not be active until the UK leaves the EU without a deal. In the event the UK reaches an agreement with the EU to leave with a deal in place, then these registrations will be cancelled as they will be no longer required.

If you have any questions please email HMRC



Ian Cass (Forum of Private Business)
Managing Director