VAT: the consequences of a no-deal Brexit
As Brexit approaches, we advise companies to:
- Check your VAT and invoicing procedures, as supplies of goods from the UK will be treated as imports, and supplies of services as operations carried out with a service provider or client established outside the European Union if the territoriality rules differ from those applicable to services rendered and consumed within the EU
- Submit a claim for the reimbursement of expenses incurred in the UK for the third quarter of 2019
All transactions with the United Kingdom would be governed by the rules applicable to transactions with countries outside the EU, including the rules on determining the place of taxation, taxation, reporting and refund procedures.
For services, companies will have to ensure that the place of taxation is not changed as a result of the change in the United Kingdom’s status.
It must also be ensured that the information to be entered on invoices is amended to reflect this change in status.
For British companies without an establishment in the EU, the appointment of a tax representative would become necessary for all their reporting obligations if they carry out transactions which are subject to VAT in France.
The VIES system, which was used to verify an intra-Community VAT number, will no longer be available for UK companies in the event of no-deal. British companies must instead obtain an EORI number in order to import into Europe. The same would apply to European companies wishing to export to the UK.
For more information or for a quote for our services, email [email protected].