You might also be interested in
Replies (7)
Please login or register to join the discussion.
I don’t understand why we will still be following EU VAT rules on EU sales if we are no longer in the EU?
“outside the EU, that supply is made outside the EU and is therefore not liable to VAT in any member state (although local taxes may apply), such supplies are said to be ‘outside the scope’ of both UK and EU VAT”.
If the UK is no longer in the EU, EU VAT rules are no longer relevant as they will beome ‘outside the scope’ of EU VAT.
I would suggest from the 30th March ALL UK businesses will no longer be liable to any existing VAT regulations in respect of sales to EU countries!
Is this more scaremongering!! Good close the VAT portals if we are out of the EU as fgolding states we are no longer under EU VAT rules. Roll on the 29th March!!
All makes sense to me. Thank you Rebecca, another useful article.
Project reality kicking in
Some good points especially the need for a VAT number checker. Best of all no deal will mean no more intrastat and EC sales lists for goods movements and sales with the UK. The leave campaign missed a trick with that one.
Given the probability of a hard Brexit is increasing, see our post on the VAT implications for Irish and UK businesses under a no deal scenario,
http://www.thevatpractice.ie/blog/brexit-the-vat-implications-for-irish-...
I wonder if the TOMS scheme (Tour Operators Margin Scheme), which I believe is also an EU scheme, will be similarly affected. Perhaps it will just be converted into a "UK-only" equivalent, or the UK/EU will wrap it up in some (future) negotiations on how to co-exist after Brexit
I understand that HMRC are in discussions with the travel industry on post Brexit changes and the application of TOMS. The current train of thought is that, where a no deal Brexit to occur, UK TOMS operators would only be required to account for UK VAT on the margin achieved for UK holidays. Consideration will need to be given to the impact any changes may have on entitlement to deduct VAT on associated costs.
The over-riding consensus is that any business, including TOMS operators, either trading into the EU or purchasing from the EU needs to start planning and considering how any changes to VAT will impact on their business.