Businesses have to be ready for a no deal Brexit therefore we outline possible post Brexit situations that will help you understand where your business will be standing if the UK leaves the EU with no agreement and what to do.

Countdown to Brexit - 31 October, 23:00 GMT

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UK business trading with the EU

UK selling goods to EU (B2C)

UK Goods are zero rated in the UK.

EU  For goods up to the local Low Value Consignment Relief (LVCR) in the country of destination, no VAT is due.  For goods exceed the LVCR for VAT has to be paid by the consumer.

UK exporting goods to EU (B2B)

UK (export)  Export of goods are zero rated. No more EC Sale Lists is requires but evidence of export must be retained.

EU (import)  Associated Import VAT and Customs Duties due when the goods arrive into the EU. Fiscal Representation required in certain countries.

UK business may require a EU/UK EORI number

Brexit impact

VAT registration is required in EU countries as distance selling arrangements will no longer apply. Fiscal Representation may be required in certain EU countries. When moving goods, export are zero rated and EC Sales Listing no longer applies for UK businesses; and import are subject to Import Vat and Import Duties. For UK sellers sending goods to the EU, LVCR continues to apply. Besides UK businesses are likely to apply for a EU/UK EORI number.

Global VAT Compliance makes sure your VAT registrations will be a smooth and efficient process and we will act as your Fiscal Representative wherever is needed. Our in-depth knowledge and experience ensure your VAT reporting is always accurate and timely taking into consideration all new requirements and rules. In addition, we will correctly handle your export and import VAT position when moving goods to other countries to avoid possible penalties and customs delays. Global VAT Compliance makes sure you are VAT compliant and fully prepare for Brexit.

EU trading with the UK

Entering goods as parcel to the UK (B2C)

EU  Goods are zero rated in the country of departure.

Parcel’s value GBP135 or less  Online registration with HMRC is required. Import VAT is paid via online account.

Parcel’s value more than GBP135 Import VAT and Import Duties apply. VAT is paid by consumer and collected by you in behalf of HMRC.

EU exporting goods to UK (B2B)

EU (exports)  Goods are VAT zero rate in the country of departure.

UK (import) Subject to Import VAT and Custom Duties due by the UK recipient of the goods.

EU businesses may require a EU/UK EORI number

Brexit impact

VAT registration is required in UK as distance selling arrangements will no longer apply. LVCR will no longer apply as well so every good entering the UK and will be subject to Import VAT and Import Duties. Depending on their value (>GBP135 or <= GBP135), goods entering the UK as parcels will need to be handle differently. When moving goods, export are zero rated and import are subject to Import Vat and Import Duties. Besides EU and on-EU businesses are likely to apply for a EU/UK EORI number.

Global VAT Compliance makes sure your VAT registrations will be a smooth and efficient process. Our in-depth knowledge and experience ensure your VAT reporting is always accurate and timely taking into consideration all new requirements and rules. In addition, we will correctly handle your export and import VAT position when moving goods to other countries to avoid possible penalties and customs delays. Global VAT Compliance makes sure you are VAT compliant and fully prepare for Brexit.

Movements of own goods

For UK business

UK to EU  Treated as an Export. Zero rate. No EC Sales Listing required anymore.

EU to UK  Treated as an Import. Import VAT and custom duties in the UK. VAT registration required in country of storage of goods.

For EU business

EU to UK Treated as an Export. Zero rate.

UK to EU  Treated as an Import. Import VAT and custom duties in Member State of destination/importation. VAT registration required in country of storage of goods.

Suppliers of Digital Services with a VAT MOSS registration

 UK business will need to register under the non-EU VAT MOSS scheme in an E27 member state

 EU business will need to VAT register in the UK for to report VAT on digital services in the UK

 Non-EU business with UK VAT MOSS registration and any other EU establishment will need to moved their VAT MOSS to an E27

 Non-EU business with only UK establishment will need to register under the non-EU VAT MOSS scheme in an E27 member state

Brexit impact

VAT registration in a different VAT MOSS scheme may be required according to your existing registration.

Global VAT Compliance makes sure your VAT registrations will be a smooth and efficient process. Our in-depth knowledge and experience ensure your VAT reporting is always accurate and timely taking into consideration all new requirements and rules. Global VAT Compliance makes sure you are VAT compliant and fully prepare for Brexit.