V1.308 Brexit—impact on imports and acquisitions
This paragraph considers the implications for imports and acquisitions which arise from Brexit. For commentary on imports generally, see Division V3.3.
For an overview of the impact of Brexit more broadly on VAT, see V1.301.
For the Government's 'Border Operating Model' from IP completion day, see The Border Operating Model.
Brexit—abolition of acquisition tax and extension of import VAT
The charge to tax on acquisitions and the charge to tax on imports are covered generally in V3.361 and V3.302 respectively.
The concept of acquisition VAT was broadly abolished in the UK1 (except in respect of Northern Ireland2), and goods moving to Great Britain from an EU member state are regarded as imports. Movements of goods between Great Britain and Northern Ireland are also regarded as imports (and correspondingly exports) in order to avoid the creation of a 'hard border' between Northern Ireland and Eire. Movements of goods between Northern Ireland and the EU are treated as acquisitions and despatches; see 'Brexit—imports, acquisitions, supplies and movements involving Northern Ireland' below.
Brexit—imports, acquisitions, supplies and movements involving Northern Ireland
The status of Northern Ireland for VAT purposes under the terms of the Withdrawal Agreement between the UK and the EU3 complicates the post implementation period position for imports and acquisitions as certain elements of EU law concerning VAT on goodscontinue to apply to and in the United Kingdom in respect of Northern Ireland4. The legislation concerned is set out in V1.301.
In an August 2020 policy paper5 the