From what we know at present, the United Kingdom will leave the European Union at the end of March 2019, and thus become a “third country” to the European Union. This will have important consequences especially in terms of VAT and customs operations.
In order to inform about Brexit changes and decisions, the European Commission has set up a regularly updated web portal, available in English, French and German.
CONSEQUENCES OF THE EXIT FROM THE UNITED KINGDOM OF THE EU
Brexit will have a strong impact on European companies operating cross-border with the United Kingdom or in the United Kingdom. In this case, the treatment of VAT on these transactions may therefore be changed on many points such as:
– Territoriality issues of VAT;
– the conditions for exemption from VAT for the supply of goods / services;
– the declaration of transactions in the EC Sales List;
– the VAT refund application procedure and deadlines.
INTERNAL AND EXTERNAL CHANGES FOR COMPANIES
Transitional provisions have been under negotiation since the beginning of the year, but nothing has yet been fixed as to their content, and each piece of information provided is still to be taken with care.
As a result, it is therefore necessary for companies conducting economic exchanges with the United Kingdom to regularly inform themselves of developments in the process in order to adapt the management of their flows to the new regulations that may be put in place.
You can find a lot of reliable information about these future changes regarding the withdrawal of the United Kingdom from the European Union on the dedicated portal.
If you are doing business with the UK, you can contact our UK experts who will keep you informed of the new customs and tax rules.