Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect on small and medium-sized businesses of implementing a system of payments of upfront VAT by companies when importing goods into the UK from the EU in the event that the UK leaves the EU VAT area on 29 March 2019.

The Government recognises the importance of VAT accounting treatment to business, and is exploring options to mitigate any cash-flow impacts for business as a result of potential changes following EU exit. The Government’s aim is to keep VAT processes as close as possible to what they are now.