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

Published by Rupert Moyle on 27 October 2020

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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

– 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.

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