Reply To: Hi,I’m looking for some advice regarding collecting VAT (tax).As a result of Brexit – we (an NZ product manufacturing and retail business) will now be required to collect VAT for our UK customers. Despite wading through many online documents regarding this – and contacting NZTE – we are still left with many questions. (Eg: Do we need a UK bank account? How streamlined is the actual process of paying VAT – does it integrate in with Xero software etc? What are the other fiscal record-keeping obligations etc?)Most website say: “Refer to a Tax expert”.We are wondering:• Are there any businesses out there that have been through this process that we could perhaps liaise with regarding this? OR;• Does anyone know of any Tax Experts whom might be able to efficiently/effectively provide this information?Thanks!Terry


Hi Terry, I sent Morgan an email and he’s expecting you to get in touch. He also wrote this. ‘For Brexit to require the collection of UK VAT when it was not previously required Terry would need to have been supplying via a non UK EU entity. It’s more likely this relates to non Brexit changes to the UK VAT on low value import rules. That is probably semantics and the answer to his question is: In terms of filing via Xero this can be done but a UK Xero account/organisation is required. Each Xero organisation is set up to file taxes in only 1 country. A UK bank account is not required but a UK VAT number will be. It would be helpful to work through the facts to ensure VAT is being accounted for correctly but it is possible to do this from New Zealand.’ He is happy for you to call him too 027 22 44 595. All the best, Rachel