What impact does Brexit have on value-added tax in cross-border transactions?
March 15, 2024 | 55,00 EUR | answered by Oliver Götzinger
Dear tax advisor,
I operate a small business that conducts cross-border transactions within the EU. Due to the upcoming Brexit, I am concerned about the possible effects on the VAT of my business. So far, I have been able to benefit from the simplified VAT regime for intra-community supplies, but I am unsure if this regime will still be valid after Brexit.
My main questions are:
1. What changes will there be in terms of VAT for cross-border transactions after Brexit?
2. Are there any new regulations or formalities that I, as a business owner, need to consider?
3. How will Brexit affect the VAT on imports and exports between the United Kingdom and the EU?
4. Will I need to provide additional documentation or evidence for my VAT declarations in the future?
I would greatly appreciate your expertise and recommendations on this matter to best prepare my business for the upcoming changes. Thank you in advance for your assistance.
Kind regards,
Luisa Kohlstein
Dear Mrs. Kohlstein,
Thank you for your inquiry regarding the possible effects of Brexit on Value Added Tax (VAT) in cross-border transactions within the EU. As a tax advisor specializing in VAT issues, I understand your concerns and will try to answer your questions as comprehensively as possible.
1. After Brexit, there are likely to be changes regarding VAT in cross-border transactions. As the United Kingdom will no longer be part of the EU, deliveries between the UK and EU member states will be treated as exports and imports. This means that the current rules for intra-community supplies will no longer apply.
2. As a business engaging in cross-border transactions within the EU, you will need to adhere to new regulations and formalities post-Brexit. This includes complying with customs regulations for imports and exports between the UK and the EU. It is advisable to stay informed about the new regulations and seek assistance from experts if necessary.
3. Brexit will also impact VAT on imports and exports between the UK and the EU. Depending on the future trade agreements between the UK and the EU, VAT rates and the handling of VAT payments may change. It is important to stay up to date on current developments and make any necessary adjustments.
4. Regarding additional documentation or evidence for VAT returns post-Brexit, there may be new requirements. You may need to provide more information about your cross-border transactions and VAT payments in order to comply with the new regulations.
In conclusion, I recommend that you proactively inform yourself about the potential effects of Brexit on your business and VAT. It is advisable to seek professional support from a tax advisor experienced in VAT issues in cross-border transactions to best prepare your company for the upcoming changes.
I hope that my answers are helpful to you and I am available for any further questions.
Best regards,
Oliver Götzinger
