Countless businesses both in the UK and globally will feel VAT implications following Brexit. Do not delay, act now.
The UK will leave the European Union at 11pm on 29 March 2019, with over 145,000 UK businesses impacted by changing VAT obligations – this much is certain.
Businesses must act now to mitigate liabilities, and ensure they are prepared.
Which businesses will be affected?
- All businesses with business related travel and expense incurred in the UK.
- All UK companies incurring business related travel expenses in the EU27.
- Sellers of low sales volumes of B2C goods to consumers within the remaining 27 EU member states (EU27).
- Sellers of both B2C and B2B goods to the EU27.
Key VAT concern areas:
- E-commerce companies will need new VAT registrations or will be required to cease selling in certain EU27 regions.
- Any business with existing foreign registrations will be required to upgrade to fiscal representation agents in 19 of the EU27.
- Any VAT reporting software will need upgrading for new place-of-supply and filings rules.
- UK businesses will need to switch to the paper-based ‘13th Directive’ VAT reclaim system.
What actions can be taken now?
- Consider which new VAT registrations to recover import VAT. If selling B2C goods under EU distance selling thresholds UK businesses should apply for new EU VAT numbers.
- If using B2B triangulation and commissionaire simplifications, investigate if you will need new VAT registrations.
- Check which EU27 countries require you to appoint a VAT fiscal representative.
- Apply for a new EU MOSS registration for B2C digital services.
- Submit any last foreign VAT reclaims on the HMRC portal for EU VAT incurred, before 29 March 2019.
Taxback International and SAP Concur can help your company overcome the confusion, sign up for our live webinar to ensure you are prepared!
Don’t be left to pick up the pieces. Prepare for Brexit before it is too late.
Taxback International can analyse your SAP Concur data instantly to provide a fast and free analysis to determine your VAT reclaim potential, and VAT compliance obligations.
We will ensure all 8th directive foreign VAT claims are submitted by March 29 2019, and offer guidance on how your company should prepare for a change to paper based 13th directive VAT reclaim.
We also ensure that your VAT registrations are updated in line with changing requirements and assess the requirement for fiscal representation on your part.
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