The Irish Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019, known as the Brexit Omnibus Bill, has safely navigated its passage through the Irish Senate.
Aiming to alleviate some of the harshest consequences of a no deal Brexit, it will be enacted if that event comes to pass, on appointment by government order.
If the UK leaves the EU on 12th April 2019, without a negotiated withdrawal agreement, imports from the UK into Ireland will be subject to the existing rules for imports of goods from non-EU countries. Under current Irish VAT law this means that non-EU businesses are generally liable for import VAT at the time of importation.
The Brexit bill provides for the launch of postponed accounting for all VAT-registered importers in Ireland. The scheme will enable Irish-VAT registered importers to account for import VAT in their subsequent VAT return via a reverse charge, instead of paying it at the moment or soon after the goods arrive at the Irish border.
Although the purpose of this significant change to Irish VAT rules is to ease the financial impact of a no deal Brexit, this simplification scheme will be introduced not only to imports from the UK but from all other non-EU countries too.
The draft legislation contains provisions for the scheme to be amended for more restrictive application in the future.
The UK previously confirmed that it will also launch postponed import accounting for VAT post-Brexit.