Uncertainty continues to dominate as far as Brexit is concerned, and in this context we continue to recommend that clients South and North prepare, as far as possible, for a no deal Brexit on 29 March 2019.
In this context the Irish Government has today released a Bill (Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019), more commonly known as the “Omnibus Bill”. It is important to be aware of what the Bill proposes.
In summary, the Bill seeks to preserve continuing access to certain priority services, benefits and reliefs that might otherwise be denied in the event of a No Deal Brexit on 29 March 2019. It is intended that the legislative measures will be enacted in advance of 29 March 2019.
One of the key tax provisions in the Bill is the introduction of Postponed VAT Accounting.
Our VAT & Customs Partner Glenn Reynolds comments that "this will allow goods to be imported from the UK without having to pay VAT at the time of import assuming the business operates with full VAT recovery. The same treatment will also apply to all imports from outside the EU. This is a major change in the VAT rules which will assist cash flow arrangements of all importers."
The details of what is contained in the Omnibus Bill are set out in the PDF below and relate to the following areas: