EU Trade after Brexit: 20 Real-life VAT Problems Solved
A Tips & Advice Special Report about...
In a nutshell
A stack of new VAT rules for imports and exports of goods and services between the UK and the EU have now been in play for a year. There is guidance, but it’s often difficult to apply in a practical context. In this Special Report we cut straight to the chase and look at how the rules work in real-world situations, offering practical solutions, rather than discussing the ins and outs of the legislation.
The writer, Neil Warren, is one of the UK’s leading VAT experts. He has pulled together 20 case studies based on real queries he’s been advising on in recent months. At least one of them is sure to cover your situation, including:
- Selling goods to EU customers
- A GB business sells goods located in one EU country to a business in another EU country
- A GB retailer sells goods on her website to private customers in the EU
- A GB business sells goods to a VAT-registered customer in Northern Ireland (NI) - which will then be sold to customers in both NI and Ireland
- Buying goods from EU suppliers
- A GB business imports goods from both EU and non-EU suppliers - how does it complete its UK VAT return?
- An EU parent company has set up a separate subsidiary company in the UK to deal with its GB imports - how will this work?
- Selling services to EU customers
- A UK business sells digital services to both business and private customers in the EU - what has changed since 1 January 2021?
- A UK builder provides land-related services in the EU
- Performance services carried out by a UK business in the UK and in the EU
- Buying services from the EU
- Miscellaneous queries
- How and when can VAT incurred in an EU country be reclaimed?
- The position for digital services for business-to-business and business-to-consumer supplies in the UK and EU.
By focusing on the application of the rules post-Brexit, this Special Report gets you to the heart of the issues affecting these scenarios in a way you can apply to your own circumstances, reducing admin and cost along the way.
We've created this Tips & Advice Special Report especially for...
Everyone involved in running a business who wants to:
- Correctly apply the rules for post-Brexit EU trade
- Get practical insight in the new VAT rules based on real cases
Tax and VAT advisors, bookkeepers and accountants that want to:
- Be fully up to speed with the stack of new VAT rules for trade between the UK and the EU
In this Tips & Advice Special Report you'll read about...
Section 1. Selling goods to EU customers
Case study 1. A UK business sells goods located in one EU country to a business in another EU country
Pre-Brexit - triangulation
Triangle is broken
Dutch VAT registration?
Case study 2. Goods are shipped from the UK to a Polish business, but the invoice is issued to a French company
UK VAT - zero-rated export
Goods arrive in Poland
Who is the importer?
Customer refuses to act as importer
Case study 3. A GB retailer sells goods on her website to private customers in the EU
Post-Brexit - UK VAT returns
Arrival in the EU
EU changes - July 2021
Case study 4. A GB business sells goods to another GB business but arranges for them to be directly shipped to a business in an EU country
Who is the importer and exporter?
Arrival in Ireland
Twist to the tale
Case study 5. A business transfers stock to an EU business, which “calls off” the stock when it is required
Call-off stock procedures until 31 December 2020
Belgian VAT registration
Nil registration threshold
Case study 6. A GB business sells goods to a VAT-registered customer in NI which will then sell them to customers in both NI and Ireland
Northern Ireland Protocol
Imaginary border in Irish Sea
What about own stock?
Section 2. Importing goods from EU suppliers
Case study 7. A GB business imports goods from the EU: getting the import procedures right
Importer of record
Rules of origin
Case study 8. A business imports goods from EU and non-EU suppliers. How does it complete its UK VAT return?
Postponed VAT accounting (PVA)
Customs Declaration Service (CDS)
VAT return check
Case study 9. An EU parent company wants to set up a separate subsidiary company in the UK to deal with its GB imports
Purpose of arrangement
The supply chain
Is a subsidiary company necessary?
Case study 10. An EU business sells goods valued below £135 to private UK customers via its website and an online marketplace
New rules since 1 January 2021
Charging sales VAT?
Customer is VAT registered
Section 3. Selling services to EU customers
Case study 11. A UK business sells digital services to both business and private customers in the EU. What has changed since 1 January 2021?
What is different post-Brexit?
EU VAT rates
Case study 12. A UK business provides professional services to B2B and B2C customers in several EU countries
B2B general rule is unchanged
B2C professional services
Use and enjoyment rule
Case study 13. Performance services carried out by a UK business for both UK and EU customers
Place of supply B2C
Place of supply B2B
VAT registration in EU - pre-July 2021 rules
What changed on 1 July 2021?
Case study 14. A UK builder provides land-related services to business and private customers in Ireland and NI
Place of supply
NI is part of UK for services
B2B services in Ireland
What about private work in Ireland?
Section 4. Buying services from the EU
Case study 15. A UK business is using an EU subcontractor to assist with a consultancy contract carried out for another business in a different EU country
Buying services from abroad
What about VAT paid on expenses in Germany?
NI adopts UK rules for services
Case study 16. An EU business rents an office in the UK. Can it reclaim VAT on the rent and other expenses?
Reverse charge in the UK
Land supplies are subject to UK VAT
VAT refund claim to HMRC
Section 5. Miscellaneous queries
Case study 17. How and when can VAT incurred in an EU country by a GB business be reclaimed?
No taxable supplies
13th Directive claim
Case study 18. What is the position on digital services for B2B and B2C supplies in NI and Ireland?
Place of supply for services
Non-Union MOSS scheme
Case study 19. Goods are purchased from the EU and shipped directly to Ireland without entering GB. Some are sold onward into NI
EU and non-EU movements of goods
What are the supplies?
VAT registration in Ireland
VAT liability of sales
Case study 20. A GB business is to start trading with EU customers in goods and services and is looking for a checklist of crucial things to consider
A GB EORI number is essential
Consider using a customs agent or freight forwarder
Elect for postponed VAT accounting (PVA) for all imports
Sales VAT is due for imports of £135 or less
All exports from GB are zero-rated
EC Sales Lists and Intrastat despatch returns are no longer needed
Digital supplies to non-business EU customers - register for the non-Union MOSS
Many B2C services are no longer subject to UK VAT
Reclaiming overseas VAT - use the 13th Directive system
Consider registering with the Trader Support Service (TSS)
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