Brexit: tax and customs consequences

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It is March 29, 2019 that the British will leave the European Union, however many uncertainties still remain on the post-breed tax and customs environment.
Leaving the European Union, it is in terms of indirect taxation that the upheavals will be most notable for the United Kingdom.

Learn more about the Brexit regulations by downloading our special feature

The consequences of the Brexit on commercial transactions, VAT refund and tax representative

In fact, from now on, goods entering the VAT intra-Community territory from the United Kingdom, which are the subject of VAT collection, will be considered as imports.
At the same time exports will be goods shipped or transported to the United Kingdom from the territory of the European Union, which will be subject to conditions exempt from VAT.

Concerning VAT refund applications, they will no longer be able to be requested electronically, pursuant to Directive 2008/9 / EC, by taxable persons established in the United Kingdom. From now on, they will have to make their requests in accordance with Directive 86/560 / EEC which will allow the Member States to condition the refunds to reciprocity.
Finally, the appointment of a tax representative as the person liable for payment of VAT may be imposed on a company established in the United Kingdom carrying out taxable transactions in a Member State of the EU by that Member State.

Brexit and customs duties: negotiations to come

Exporting companies in the United Kingdom could lose their attractiveness to those established in the European Union with regard to customs duties constituting a cash advance requirement for purchasers. Therefore, the challenge for the United Kingdom is to negotiate with the European Union a specific free trade agreement totally or partially neutralizing customs duties, as can be found with Norway, Iceland and Liechtenstein in through the European Economic Area (EEA). Another example is Switzerland, which benefits from bilateral agreements with the European Union on the free movement of goods and people in certain sectors.

ASD Group is an international company present in 25 countries worldwide including the United Kingdom. If you are doing business with the UK, please contact our UK experts who will keep you informed of the new customs and tax rules.

Our Brexit special feature is available here

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