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Businesses have to be ready for a no deal Brexit therefore we have outlined 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 the end of the transition period - 31 December 2020, 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. (These rules will change on 1 July 2021)

UK exporting goods to EU (B2B)

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

EU (import)  Associated Import VAT and Customs Duties (if consignment value is over GBP 135) 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 imports are subject to Import Vat (if consignment is worth over EUR22) and Import Duties (if consignment is worth over EUR 150). For UK sellers sending goods to the EU, LVCR continues to apply. UK businesses are likely to apply for a EU/UK EORI number.

Global VAT Compliance will make sure your VAT registrations will be a smooth and efficient process and we will act as your Fiscal Representative wherever needed. Our in-depth knowledge and experience ensures 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 can ensure you are VAT compliant and fully prepared 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.

Consignment’s value GBP135 or less  VAT registration with HMRC is required. Import VAT is exempt. Seller has to charge UK VAT at a point of sale and remit to HMRC in quarterly VAT return.

Parcel’s value more than GBP135 Import VAT and Import Duties apply. VAT is paid by consumer.

EU exporting goods to UK (B2B)

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

UK (import) Consignment’s value GBP135 or less VAT registration with HMRC may be required. Import VAT is exempt. Seller has to charge UK VAT at point of sale and remit to HMRC in quarterly VAT return. If UK buyer provides valid UK VAT ID number then no VAT has to be charged at point of sale and VAT reverse charge can be applied.

UK (import) Consignment’s value over GBP135, subject to Import VAT and Custom Duties due by the UK recipient of the goods. Buyer can normally apply Postponed Accounting for import VAT.

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 handled differently. When moving goods, exports are zero rated and imports are subject to Import Vat and Import Duties. EU and on-EU businesses are likely to apply for a EU/UK EORI number.

Global VAT Compliance can make 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 can ensure you are VAT compliant and fully prepare your business 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 (if consignment value is over GBP 135) in the UK. VAT registration required in country of storage of goods.in the UK. 

For EU business

EU to UK Treated as an Export. Zero rate.

UK to EU  Treated as an Import. Import VAT and custom duties duties (if consignment value is over EUR 150 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 move 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 will ensure 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 will make sure you are VAT compliant and fully prepared for Brexit.