VAT on B2C transport services between UK and EU

Question regarding changes to the VAT treatment of intra UK-EU transport services post Brexit

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I'm hoping somebody can help me with a post-Brexit related VAT query.  I've found Accounting Web to be invaluable over the past 10 years or so, but I've never posted a question myself before.

I have a client who transports goods from the UK to Europe by van, mostly for personal customers (B2C).  Most customers are ex-pats who order goods to arrive at my client's UK address, and my client periodically transports these by van to Europe.  Under the pre-Brexit VAT rules, the place of supply was the UK (where the service began) and sales were subject to standard rate VAT. 

Under the post-Brexit rules, it now looks like the place of supply is split between the UK and EU country proportionally.  The UK part will be subject to zero rate VAT, and the EU part will be outside the scope of UK VAT.  Is this correct?  This would mean two separate entries on each sales invoice (along with the recharged customs duty on the imported goods).

If so, my client currently uses the Flat Rate VAT Scheme so this will no longer be beneficial, as the zero rated sales will be subject to their Flat Rate percentage.

Might there also be an obligation to register for VAT in the EU country (Greece) for B2C sales?  I presume that any B2B sales would be covered by the reverse charge?

Is there anything else I should be thinking about?

Thank you

Replies (1)

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chips_at_mattersey
By Les Howard
16th Feb 2021 13:52

The EU part of any journeys will be outside the scope of UK VAT, but render the client liable to be registered in each applicable Member State. I suspect this will present a serious administrative burden, so you will need to consider his options.

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