On 11 September 2018, the European Commission issued a notice in which it states that because of the great uncertainties about the content of an eventual withdrawal agreement between the European Union and the United Kingdom, companies must consider that the United Kingdom will, from 30 March 2019, become a third country to the EU with regards to VAT and customs rules and to prepare for the consequences.
VAT treatment of cross-border supplies of goods and services
Companies should familiarize themselves with import and export customs procedures and formalities to be applied with regards to the United Kingdom after 30 March 2019. Furthermore, companies should make sure that they can provide all necessary evidence regarding their supplies to and purchases from the UK up until 29 March 2019.
Taxable persons established in the UK should verify if new liability rules apply to their supplies of services to the EU after 30 March 2019.
EU Mini One-Stop Shop scheme (MOSS) for B2C digital services
The Commission’s notice contains instructions regarding the submission of MOSS VAT returns, as well as explanations of cases that require a change of registration as of 30 March 2019.
VAT Refund requests
Taxable persons established in the EU and requesting a VAT refund from the UK should make sure to request their refund while the UK is still an EU Member State, as there is no certainty about the future UK VAT refund regime.
From 30 March 2019, taxable persons established in the UK must apply for VAT refund according to the VAT refund procedure for taxable persons established outside the EU. This might require the designation of a tax representative to obtain the refund.
Our special feature about Brexit can be downloaded here.