Brexit

THE EFFECTS OF BREXIT ON BUSINESSES

As the exact rules regarding the relationship between the EU and the UK are still being agreed, it is important to keep up to date with developments. Alternative TVA is monitoring the situation closely.

If you would like to know how your business will be affected by Brexit, contact us today. We will identify your operations and flow of goods to help you determine your fiscal liabilities and the actions you need to take.

Email us today or call +32 (0)478 16 18 22 for a free consultation.

The United Kingdom left the European Union on 31 January 2020. Under the leaving agreement, there is a transition period (also called the implementation period) which will come to an end on 31 December 2020. During this time, the EU and UK are attempting to create a new trade deal which will take effect from 1 January 2021.

When the transition period ends, the UK will lose all rights to trade under existing arrangements unless a trade agreement is in place. In the absence of an agreement, the so-called “no deal Brexit”, the movement of goods between an EU country and the UK will be classed as an import/export operation and will be subject to customs procedures.

HOW WILL BREXIT AFFECT MY BUSINESS?

Depending on the nature of your business, you may be affected by:

UK businesses will need to appoint a fiscal representative in Belgium if they wish to be registered for VAT in Belgium.
Customs duties: Goods moving between the EU and UK will be taxed on import. Customs tariffs will need to be paid when the goods enter the importing territory.
Import VAT: All goods moving between the EU and UK will be subject to VAT on import.
VAT registrations: The EU’s Mini One-Stop Shop (MOSS) platform will be deactivated in the UK. This will force companies to register for VAT in the country where their goods arrive or depart if they want to reclaim VAT. For example, if the seller is the importer of goods and subsequently sells those goods to an end client, they will require a VAT number in the country where the goods are sold. It may even be necessary for companies to register a VAT number in both the EU and UK.
VAT refund requests will be subject to the ‘13th Directive’. This can delay VAT refunds by six months or more.
A UK EORI number will be needed by companies which import or export goods to the UK. Existing EORI numbers will only be valid in the EU. Some UK companies may require two EORI numbers: one for their EU operations and one for operations in the UK.
VIES: The EU’s VIES platform will no longer be accessible by UK companies. This will make it harder to check the validity of a VAT registration.

HOW CAN ALTERNATIVE TVA HELP?

Use our expertise to help you to decide which options are necessary for your business and your next steps. In addition, we offer:

A free audit of your business to determine if you are Brexit ready
VAT compliance services and training for companies in Europe and the UK
Fiscal representation in countries where it is needed
Customs compliance and other related services
Establishment of ‘designated exporter’ records in the EU for companies outside the EU
Intrastat filing.

© 2020, ALTERNATIVE TVA - AN ALTERNATIVE, CREATIVE AND PRAGMATIC APPROACH