Our team has put together the latest updates on Brexit and its impacts on VAT and Customs for our clients and readers. Give us a call at +33 3 20 25 70 73 or arrange a meeting with our specialists to discuss the situation of your company regarding Brexit!
Brexit: Obligation to appoint a Belgian representative responsible for companies based in the United Kingdom
From January 1st, 2021, companies established in the United Kingdom and carrying out taxable transactions in Belgium will have to designate a responsible representative for their identification with Belgian VAT.
The European Commission has suggested the establishment of a special VAT number for companies established in Northern Ireland
On July 31st, 2020, the European Commission suggested the introduction of a special VAT number for businesses based in Northern Ireland once Brexit comes into effect.
Under the Withdrawal Agreement, movements of goods between the European Union and Northern Ireland will remain subject to intra-community VAT rules.
This special VAT number is intended to differentiate companies in Northern Ireland from those in other parts of the United Kingdom.
End of the transition period with the European Union on December 31st, 2020
The British government has confirmed its wish to not extend the transition period beyond December 31st, 2020.
Thus, from January 1st, 2021, the rules applicable to intra-community trade between the United Kingdom and the countries of the European Union will no longer apply. Companies will be considered to be carrying out exports and imports with application of customs formalities as part of their trade with the United Kingdom.
Brexit: Establishment of a deferral mechanism for payment of VAT due on imports
As of January 1st, 2021, the UK will implement a postponed VAT accounting mechanism directly on VAT returns.
Companies registered for VAT in the United Kingdom will thus be able to declare and deduct VAT due on imports on the same VAT return, thus avoiding the prior payment of this tax to the customs authorities.
Publication of a guide for imports and exports
The United Kingdom published on August 18th, 2020 two guides to understanding the import and export mechanisms of the United Kingdom from January 1st, 2021.