With 54 days left until the UK exits the EU, negotiations on a transition arrangement have not progressed. This leaves us with a significant chance of a crash-out Brexit, and trade on World Trade Organisation rules. ISME, the Irish SME Association is today (29th January) calling on the Government to mitigate the damage that import VAT would do to small indigenous enterprise.
Speaking today, ISME CEO Neil McDonnell stated:
“One thing that the Government can do now is to mitigate the damage that import VAT would do to small indigenous enterprise. As things stand, Irish importers will have to pay 23% VAT at point of entry for goods purchased from the UK.
This will present a massive cash-flow hit for all those businesses, as well as a VAT windfall for the Revenue. This hit is avoidable by changing the VAT rules to defer VAT payment, as happens now for EU-purchased goods.”
ISME calls on Government to eliminate this threat to indigenous business, as several other EU members have already done.