Brexit Advice on VAT

Now that the UK has left the European Union, the rules surrounding VAT on services, imports and exports after Brexit have changed. For businesses that are still doing business with EU customers, The VAT People can provide the right Brexit advice on VAT to ensure you are fully aware of and compliant with these new rules.

Our expert VAT consultants have followed every Brexit development closely and can provide you with up-to-the-minute guidance and support on all aspects of VAT legislation, including levies imposed on shipments and services, reverse charge VAT after Brexit, and maximising VAT recovery on your operations within the UK.

We have decades of experience in helping businesses across all sectors with reclaiming VAT and have so far helped dozens of firms decipher the complexities of the regulations and requirements after Brexit. We will provide the guidance you need in a way that is both practical and easy to understand, taking all the stress out of VAT compliance.

For the latest Brexit advice on VAT, contact The VAT People today by calling 0161 477 6600, or complete an online enquiry form to request a call back at a time that is convenient for you.

How we can help you

Our experienced consultants have the knowledge and expertise required to help your business to navigate the complexities of VAT and Brexit. We will explain the implications of Brexit for your business, ensuring that your services continue to run smoothly and that unnecessary expenses are kept to a minimum.

The changes to VAT regulations following Brexit have been rapid, complex and confusing for many businesses, with new developments continuing to emerge as the UK’s post-Brexit trading relationship with the EU gradually takes shape. Getting tailored advice from an expert VAT consultancy on how these rules apply to your business can make this transition process considerably smoother.

Working in collaboration with our sister company, The Customs People, we will consider every element of your imports and exports and how these have been impacted by Brexit. This will allow you to make the necessary changes to remain in full compliance with the latest rules while making sure you are not paying any unnecessary expenses.

We can advise you on the following matters:

  • VAT on imports and exports to and from the EU after Brexit
  • VAT on services to the EU after Brexit, including sales of digital services
  • VAT invoicing to EU countries after Brexit
  • Reverse charge VAT after Brexit
  • Specific rules applying to trade between Great Britain and Northern Ireland
  • New rules for claiming VAT refunds from EU member states
  • Changes to transit arrangements or customs procedures
  • Changes to the EU ‘One-Stop Shop’ rules

Why choose us?

The VAT People is one of the UK’s leading specialist VAT consultancies, with more than two decades of experience in helping businesses of all sizes with all aspects of VAT, from small companies to large multinational corporations. No matter what the needs of your business may be, we are well placed to help you understand and make the most of the options available to you regarding Brexit.

Many of our senior consultants have previously worked for HM Revenue & Customs, giving them first-hand experience of the inner workings of this body, which helps us to provide well-informed advice. Our team has been following the developments surrounding Brexit closely for many years and can provide you with timely updates about all of the latest rule changes, including how to prepare for future updates to VAT regulations.

We have helped countless clients across a wealth of industries to decipher their operations since the UK’s EU departure was finalised, and we are ready to work with you to make sure your transition to a post-Brexit future goes as smoothly as possible.


How has Brexit affected VAT?

Since 1st January 2021, businesses in the UK have had to consider imports and exports in a different way. The changes mean that customs procedures now apply to England, Wales and Scotland for trade with EU countries, and when moving goods to Northern Ireland. 
The way in which VAT is accounted for has also changed. For imports, in particular, this VAT change affects trade with both EU and non-EU countries. 
Our specialist VAT consultants have been inundated with calls from businesses that are involved in international trade to decipher VAT post-Brexit, and we can provide you with clarity on any aspect of the new VAT rules to which you must adhere.

I sell products from a UK warehouse to businesses around the world. Do I still need to charge VAT to consumers?

Only sales to UK destinations will be subject to UK VAT rules. After Brexit, sales of goods shipped from GB to a non-UK destination qualify for UK VAT at 0%, irrespective of the customer's business of VAT status, as long as the seller has the appropriate evidence of removal from the UK.
For sales to the EU, any previous Intrastat or EC Sales List reporting no longer applies, and there are no distance selling considerations. While there may be export procedural requirements, these will vary depending on the nature of the goods.
As with exports prior to Brexit, the seller does need to consider contractual terms about which party is responsible for the import into the destination country.
If it is found that the UK seller is responsible for the importing, it may have customs duty, import VAT and VAT registration (or other tax) obligations to deal with in the destination country. 

Are customs declarations still required?

Yes, customs declarations are needed for goods moving from the UK into the EU, as well as on goods coming to the UK from the EU. A separate declaration is required for each part of the transaction, i.e. one for the export and one for the import.

What are the latest countries adopting VAT regimes?

The latest block of countries in the process of adopting VAT regimes (since 2018) are
the members of the Gulf states:
● Saudi Arabia
● Bahrain
● Qatar
● Oman
● Kuwait
Businesses that trade with GCC countries must ensure that they understand and
implement VAT correctly. Anticipating its effect in advance of entering into agreements
or making supplies will be paramount for success.

What are the similarities and differences between UK and European Commission (EC) VAT?

As with EC VAT, the UK will have the same exemptions for health, education, certain
financial services, public transport and transport services. There will also be a zero rate
for some foods.
The main differences between the post-Brexit VAT regulations are zero rates for oil-
related supplies, reflecting the Gulf Cooperation Council’s (GCC) main economic activity.

Where can I learn more about UK and EC VAT laws?

We are well versed in understanding UK and EC legislation and are also in a position to
consider the likely impact of VAT on supplies made to or in the GCC states. If you
require further advice, please contact our helpline for an initial free consultation.

What is the threshold for accounting for VAT on electronic services in the EU?

A threshold of EUR 10,000 applies to the cross-border supplies of electronic services. If your business exceeds this threshold, you must account for VAT in each EU member state in which you provide qualifying services under the VAT MOSS scheme. This rule was introduced to help smaller enterprises by streamlining the process of selling by completely removing the need for them to account for VAT until this threshold has been met.
Post-Brexit, UK businesses will be required to either register in each member state in which qualifying supplies are made or register for the Non-Union VAT MOSS scheme. VAT MOSS is advantageous when supplies are made in multiple EU countries as a single return is submitted which includes supplies made in all Member States.
This prevents UK businesses having to register in each Member State in which supplies are made, submitting a return in each one. Should a business sign up for VAT MOSS they will be required to account for VAT at the rate due in the country where the customer is located. On filing of the single return, the domestic tax authorities where Non-Union VAT MOSS has been obtained will then be responsible for dividing the VAT received from the seller to each individual Member State in which qualifying sales are made.
The VATMOSS rules for digital services have been expanded in scope due to the removal of the distance selling simplifications and now apply to e-commerce transactions (the supply of goods/services via an online marketplace or platform) as of 1st July 20

Contact Us

If your business requires further support and advice on any aspects of the rules for VAT on imports and exports after Brexit, get in touch with us today. Our specialist VAT consultants are here to help you find the right solution for your organisation.

Call us now on 0161 477 6600, or fill in an online enquiry form and we will be in touch at a time that is suitable for you.