BREXIT: Services offered between the UK and EU after the 1st of January 2021

For services between the UK and the EU, the same rules will apply as with other third countries. In principle, services between EU and British businesses take place without VAT (unless an exception applies). The entrepreneurs no longer need to include these transactions in the ICP Statement.

Services by British entrepreneurs to private individuals in the EU will only be taxed with EU VAT if it concerns services such as TBE or digital services. British entrepreneurs must register in an EU country for the One Stop Shop for digital services (Non-Union Scheme). VAT on these services is payable in the Member State where the consumer resides.
The UK will also levy VAT on digital services provided by foreign businesses to private individuals. A regular VAT registration is required for this.

VAT MOSS Corrections 

EU entrepreneurs submitting a VAT MOSS declaration should take into account that any corrections to the figures for the UK can be corrected until 20 January 2022 at 11 p.m. using the VAT MOSS system.
After January 20, 2022, HMRC’s VAT adjustment process must be followed to correct a UK VAT payment submitted in a previous VAT MOSS return.

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