• Privacy policy
  • T&C’s
  • FAQ
  • Meet the Team
  • About The London Economic
  • Advertise
TLE ONLINE SHOP!
NEWSLETTER
SUPPORT THE LONDON ECONOMIC
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics Business

UK firms ‘face £34bn VAT bill’ for transporting goods across EU countries

It comes as thousands of lorries queued for miles on Kent roads as businesses sought to transport their goods into the EU before the end of the transition period.

Joe Mellor by Joe Mellor
December 21, 2020
in Business
Credit;PA

Credit;PA

British companies will face £34 billion in tax costs for transporting goods around Europe after the transition period ends, according to VAT experts.

UK-based VAT IT said thousands of UK businesses are “unprepared” to deal with VAT laws in countries across Europe once the country exits the EU next month.

Selwyn Stein, managing director of the tax reclamation specialists, told the PA news agency that firms exporting across Europe will face hefty unexpected VAT bills even if a last-minute trade deal is secured.

VAT IT, which has around 13,000 clients globally, said it has recently reclaimed around £250 million in taxes for companies outside the EU dealing with the 27-nation group.

RelatedPosts

Banks have shifted £900bn in assets from UK to EU since Brexit

What is Amazon Business, and how can it help your business grow B2B sales?

Bottoms up! Drink sales 114% higher than pre-Covid as pubs reopen

Amazon apologises for tweet denying their drivers need to urinate in bottles

Tax advice

It said that demand for tax advice has soared in recent months as companies scramble to be prepared for January 1.

“A couple of months ago we were getting 50 calls a week and that’s risen to at least 150 now,” Mr Stein told PA.

“And we are urging more companies to get in touch because it’s clear this is something a lot of business just aren’t prepared for.

“It’s not just a small business issue either. We’ve had big FTSE companies getting in touch recently because they didn’t realise how complicated this can be.”

Mr Stein said UK companies will have to deal with different VAT rules in each EU country once it exits the trade bloc, with costs ranging from 20% to 27%.

The company said this will add up to an estimated £34 billion and many companies are unaware that this VAT bill can be reclaimed by firms.

Declarations

“We are looking ahead to 270 million customs declarations and maybe British firms find this paperwork complicated in English, let alone when they are handed the Spanish or French copy,” Mr Stein added.

“I don’t believe British firms, as a whole, are entirely aware, and I think that is why are seeing more businesses coming to us now.

“Covid means some companies have been slow to react to this but it is important small companies are aware of the tax implications.”

It comes as thousands of lorries queued for miles on Kent roads as businesses sought to transport their goods into the EU before the end of the transition period.

Related: ‘Significant disruption’ – Crisis talks as France halts freight from UK over Covid strain

Support fearless, free, investigative journalism Support fearless, free, investigative journalism Support fearless, free, investigative journalism

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending fromTLE

  • All
  • trending

What If We Got Rid Of Prisons?

Stress, fear and homelessness: The threat looming over families confronted with eviction

File photo dated 07/11/03 of a prison cell.

The Other Prison Pandemic

Latest from TLE

TLE drives: The Honda Civic Type R

Adam James: The lone wolf of Saville Row

Credit: Aaron Chown/PA Wire

Greta: ‘Completely unethical’ for rich nations to vaccinate young instead of helping poor countries

Set For Life Results Monday 19 April 2021

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

Contact

Editorial enquiries, please contact: jack@thelondoneconomic.com

Commercial enquiries, please contact: advertise@thelondoneconomic.com

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Lifestyle
  • Food
  • Property
  • Travel
  • Tech & Auto
  • About The London Economic
  • Meet the Team
  • Privacy policy

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.