If there is no Brexit deal on VAT, what happens to businesses?
The UK leaving the EU without an agreement on VAT is unlikely. Negotiations are still ongoing, with both the UK and EU working towards a positive deal. However, the UK Government has published information for businesses in the situation of a 'no deal' outcome.
In July 2018, the EU and UK released a joint statement on the progress of negotiations regarding the withdrawal of the UK from the EU VAT System.
What happens with the UK and EU VAT reclaims?
UK businesses will no longer have access to the EU VAT refund system. UK businesses will continue to be able to claim refunds of VAT from EU member states by using the existing processes for non-EU businesses.
UK businesses selling overseas in EU member states?
UK businesses will be able to continue to sell goods they have stored in an EU Member State to customers in the EU. Current EU rules would mean that UK businesses will continue to be required to register for VAT in the EU member states where sales are made in order to account for the VAT due in those countries.
EU VAT Registration Number.
UK businesses will be able to continue to use the EU VAT number validation service to check the validity of EU business VAT registration numbers. UK VAT registration numbers will no longer be part of this service, a system will be developed so that UK VAT numbers can continue to be validated.
For the full update on the UK Governments Guidance on VAT for Business if there's no Brexit deal on VAT, you can read it all here.
If you have more questions regarding the impact of Brexit on your company's VAT reclaim, registrations and obligations, get in touch and we can help.
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