VAT – Post 31 January 2020

Jan 31, 2020
Stephen is one of the firm’s tax partners. He specialises in income tax, capital gains tax, corporation tax, inheritance tax, and stamp duty land tax. He also specialises in advising property and construction businesses.
VAT post Brexit

Even though the UK is leaving the EU on 31 January 2020, the transition period to 31 December 2020 means that there will be no VAT changes, in terms of paperwork and process.

From 1 January 2021 – the UK will have imports and exports of goods (to EU countries) instead of intra-community movements. Apart from Customs Entries, in practice there will be very little change for importers and exporters in the UK.

Things are far more uncertain regarding services to/from the EU post 31 December 2020.  In the main, the UK will probably want to replicate the general rules as they are now for Business to Business supplies of services.

But Business to Consumer supplies and their treatment will need to be negotiated with the EU.  Reciprocal arrangements will need to be made between the UK and EU, so services will be an area of uncertainty well into the Autumn of 2020.

In the meantime, for all companies trading with the EU, an EORI number (Economic Operator Registration Identification) will be required. This will allow you to submit customs declaration forms, which you will need to import or export goods once the transition period with the EU has ended –

HMRC have introduced a website (see below) which is a good explanation of what companies need to do before the end of the transition period – 31 December 2020.  Following the guidelines on this website should lead to a more seamless transition once the UK leaves the European Union.

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Stephen Charles

Tax Partner, Sheffield