If you are a UK business that intends to trade in the EU post 31 December 2020 you will be doing so in a much changed VAT landscape. Currently UK businesses supplying an EU customer base must treat sales as VAT free in the UK where the supply is business to business (subject to additional criteria) and charge VAT at the rate and in the VAT jurisdiction that is applicable if their customer is not in business.
Post transition on 31 December 2020 this will all change – the UK will no longer be part of the EU for VAT purposes. This will result in many UK businesses making supplies to their EC customers that will trigger a liability to import VAT and possibly duty in the country where the goods clear into the EU, and in an likelihood a requirement to register for VAT in that country. Has your business taking any measures to deal with this?
Have you considered who will clear the goods into the EU? If you are involved in EU triangular transactions where you, your customer and the manufacturer or supplier of goods are in three different EU countries have you considered the impact of no longer being able to use this simplification measure? The exit in a no deal scenario creates many questions which can be resolved with due consideration.
If you, like many UK businesses, waited to see if a trade deal allowing free trade would be agreed with the EU before taking action we strongly suggest that you contact your usual VAT advisor or call our fee VAT helpline for an initial discussion on ways that we can assist you to cope with this significant change and minimise the impact on your trade with a valuable customer base in the EU.
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