Companies need to understand what the repercussions of any VAT & customs changes will be on their respective business planning, supply chain models and profitability.
What does Brexit mean for VAT?
UK-based companies currently reclaim foreign VAT through the Electronic VAT Refund (EVR) 8th Directive, which does not require paper receipts. With most expense and corporate card systems now encouraging paperless environments, companies often do not keep any paper receipts.
After Brexit, some or all foreign reclaim potential could be lost if businesses are not aware and ready for the requirements of the 13th Directive refund mechanism.
What is the most likely impact to UK-based companies?
Under the EVR mechanism, Foreign VAT reclaim does not require paper receipts. However, after Brexit, filing of foreign VAT claims through the 13th Directive reclaim mechanism will require paper invoices/receipts. Without paper receipts, VAT Reclaim is simply not possible.
If you are using a corporate card system, the same consequences apply. No receipt = No refund.
Companies are already concerned, as come March 2019 they may lose out on a significant additional revenue stream that is Foreign VAT reclaim.
Will your company be affected?
Affected companies need to understand what the repercussions of any VAT & customs changes will be on their respective business planning, supply chain models and profitability.
If your business is registered for VAT in the UK or it involves cross-border trade with suppliers or customers in the other EU Member States, we strongly recommend that an analysis is undertaken as soon as possible.
Taxback International can do a quick free analysis to determine your VAT potential and we will ensure that all 8th directive claims are submitted by March 2019 and that your company is fully prepared for Brexit, safeguarding your revenue stream from foreign VAT reclaim with no effort from your side.
Act quickly! Preparing for and dealing with an eventual UK Brexit starts now!
We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult. Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.
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