The UK left the EU on 31 January 2020. There is now a transition period until the end of 2020 while the UK and EU negotiate longer term arrangements.
The current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period.
New rules will take effect on 1 January 2021. We will be keeping abreast of matters as they unfold and we will be adding updates as guidance is issued by HMRC.
Additionally, we have published a news item on the implications of Brexit on the right to reclaim VAT on costs associated with businesses operating in the financial service and insurance sector.
To ensure you receive our updates on any changes to the UK VAT system, including Brexit, as these are announced we highly recommend signing up for our regular free electronic newsletter service.
What should businesses be doing now?
It now seems almost certain that from 1 January 2021 you will need to make customs declarations to move goods into and out of the EU. You should:
- get an EORI number if you do not already have one
- decide how you want to make customs declarations and whether you need to get someone to deal with customs for you.
- consider how best to structure transactions, for example whether you or your customer acts as importer in the EU will usually determine whether you must register for/charge EU VAT in the country of import/shipment
How can CVC help you plan for trading after the transitional period ends
Please contact us if you have any immediate concerns about trading with the EU post Brexit. You should consider:
- The impact of any likely changes on cross-border transactions, including MOSS;
- Whether the removal of the ability to rely on EU law rights will impact on your particular business;
- Whether it may be possible to restructure some transactions to lessen the impact of changes resulting from Brexit;
- Whether it may be necessary to consider a VAT registration in another EU country.