Consequences on your daily business

VAT consequences

Goods coming from or going to the EU, will be regarded as import / export from a third country. VAT and duties must be paid on both sides.

  • The VAT can then be deducted on the next VAT return in the country of import and asked for a refund. However, it can take up to 6 months in some countries to get the refund.
  • Possibilities to apply for VAT deferment in France, Belgium or other EU countries: this means that UK companies will not need to pay import VAT when importing their goods in the EU.
  • Possibilities to apply for VAT and duties deferment account in the UK, for imports to the UK.

As UK will no longer be part of the EU, operations from or to UK companies will no longer be regarded as IC transactions

  • EU countries decide individually if a UK company needs a fiscal representative. If so, these services will often cost more because of the elevated fiscal risk that will now be shifted to the fiscal representative.
  • B2C Distance Sales: distance sales thresholds will not be applicable anymore. These sales will be considered as regular imports. VAT on import and duties must be paid, either by the seller or the buyer.
  • B2B Triangulation simplification will not apply with a UK VAT number. This means that UK companies will have to register for VAT in the country of departure or arrival.
  • VAT refund claims: VAT refund claims cannot be submitted on HMRC portal. A fiscal representative will be required to submit the claim under the 13th Directive or the company will have to be VAT registered.
  • MOSS/OSS: the MiniOneStopShop platform will be deactivated in the UK. UK companies will need to register in another EU Member State in order to declare their electronic sales.
  • VIES system will no longer be accessible for UK companies, so the validity of their registration will be harder to check.

Customs

  • Sales and supplies of goods between EU countries and the UK will no longer be intracommunity operations but imports and exports. This will imply customs procedures (customs tariffs / duties)
  • UK companies importing goods in the EU will need an EORI number (Customs Identification Number). The UK EORI number will not be valid to import goods in the EU.

Give us a call on +33 3 20 25 70 73 or book a meeting with our specialists to discuss the situation of your company regarding the Brexit!

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How can we help you today?

Do you have questions about how RMB can help your business? Send us an email and we’ll get in touch with you shortly, our VAT experts are always happy to help. You can also contact us by phone: +33 3 20 25 70 70.

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