VAT and Duty: ‘No deal’ Brexit guide for UK businesses trading with EU

Published by Rupert Moyle on 27 October 2020

Share this article

We’ve put together a brief ‘no deal’ Brexit guide, summarising the implications and practical considerations for UK businesses trading with the EU, either on a Business to Business (B2B) or Business to Consumer (B2C) basis.

Has your business considered the below?

Issue B2B considerations B2C considerations
General – EORI number needed – to clear goods into EU.

– Is import Duty due on UK purchases, adding to cost price?

– Potential added or even double duty cost (Into UK and then into EU)? Any reliefs?

– Additional Customs documentation needed (including origin and commodity codes) and cost.

– Do contracts/T&C’s allow for revised pricing and changes in VAT/ Duty/ delivery times?

– Are systems set up to cope with any changes?

Delays in delivery due to change in Customs procedures, affecting:

– Customer delivery expectation

– Perishable goods

AEO status (or transitional simplified procedures) to speed up processes? This can take 6 months or more for HMRC to approve.

Set up a stock hub in the EU?

– VAT registration/s in EU required.

– Where to set up?

– How long to do this?

VAT distance selling

The threshold over which VAT registrations are needed in EU countries

N/A. – No longer applies – will VAT
registration be required in each
country?

– Set up in the EU and use distance
selling from there? Where?

– Distributer/agent model?

VAT & Customs Duty – who pays?

– Importing into the EU

– Depends on responsibility for importation/delivery (incoterms).

VAT registration/s in EU?

Do you need an EU establishment?

VAT and Duty is payable on entry.

Customer: Unexpected cost and
clearance burden?

Seller: VAT registrations?

Do you need an EU establishment?

VAT simplifications

– Triangulation

– Call off stock

– Supply and install

No longer available – local VAT registrations required. N/A.
Trading through e-market places

– Goods moved into EU

Local VAT registrations required, need to know movements.
Electronic supplies of services N/A – normal rules apply. EU Mini One Stop Shop (MOSS) not available to UK. Need to register for Non-Union MOSS in an EU Country. Where?

Whether you or your business needs help with International VAT queries or you are looking for some VAT and Duty support or advice, our team of VAT specialists can help. For further information or guidance, please contact me.

Share this article

Close

Email Rupert

    • yes I have read the privacy notice and am happy for Kreston Reeves to use my information





    Related people

    Close

    Email Colin

      • yes I have read the privacy notice and am happy for Kreston Reeves to use my information





      View teamSubscribe

      Close Expand

      Subscribe to our newsletters

      Our complimentary newsletters and event invitations are designed to provide you with regular updates, insight and guidance.

        • Business, finance and tax issuesPersonal finance, tax, legal and wealth management issuesInternational business issuesCharity and not-for-profit issues
        • Academies and educationAgricultureFinancial servicesLife sciencesManufacturingProfessional practicesProperty and constructionTechnology
        • yes I agree I have read and accept the privacy policy and am happy for Kreston Reeves email communications I have selected above





        You can unsubscribe from our email communications at any time by emailing [email protected] or by clicking the 'unsubscribe' link found on all our email newsletters and event invitations.