Dutch Tax Authority has issued a letter regarding Brexit

Feb 4, 2019 | VAT Updates

The UK is scheduled to leave the EU on March 29 2019 (the so called Brexit) and governments are starting to give some recommendations to local companies that trade with the UK as this deadline approaches.

On 1 February 2019 the Dutch Tax Authority has issued a letter highlighting 3 key points which businesses might have to consider in preparation for Brexit.

What the Dutch Government said?

The exact consequences of Brexit depend on the withdrawal agreement that is currently ongoing between the UK and the EU, however, it is also possible that no withdrawal agreement will be reached.

  • If there is no agreement on 29 March 2019, the UK will leave the EU on that day without a transition period.
  • With a withdrawal agreement (deal) there will be a transition period. You will then face with customs formalities and customs supervision after the end of the transition period.

The precise measures your Company has to take depend on the nature of your business and its activities. It also matters whether you use a customs agent. However, there are 3 things you should do in order to be able to proceed with the preparation for both scenarios:

  • Make sure you have an EORI number – an identification number that is required to trade with Customs Authorities.
  • Make sure you are able to file a declaration to the Customs Authority. Register with a customs agent or get the necessary software.
  • Register for electronic traffic message (Registratie elektronisch berichtenverker) if you are going to file a declaration yourself.

In addition, make sure you get a complete picture of what you need to do in your specific situation. For example, whether you need further permits and whether other formalities apply to you:

  • Do the Brexit Impact Scan on brexitloket.nl. This allows you to check which effects Brexit might have on your company.
  • Follow the steps on douane.nl/brexit. There you will also find which customs permits are there.

We recommend to follow these guidelines to be sure your business is compliant with all required legislation to avoid the implications of Brexit, weather there is a ‘deal’ or not. Global VAT Compliance can be of assistance in this matter so do not hesitate to contact us.

As always we will keep you updated regarding all VAT news from the Netherlands and around the world.