How Brexit can Impact Your VAT Claims

The UK is due to leave the European Union on 29 March, 2019, regardless of whether there is a deal with the EU or not. The move, popularly known as Bexit, will have implications on taxes, levies, and trade agreements.

To learn about how Brexit will impact your business VAT return, we encourage you to read the details below:

According to Article 51 Value added tax (VAT) of the Withdrawal Agreement: 

  • Council Directive 2006/112/EC shall apply in respect of goods dispatched or transported from the territory of the United Kingdom to the territory of a Member State, and vice versa, provided that the dispatch or transport started before the end of the transition period and ended thereafter.
  • Directive 2006/112/EC shall continue to apply until 5 years after the end of the transition period with regard to the taxable person’s rights and obligations in relation to transactions with a cross-border element between the United Kingdom and a Member State that took place before the end of the transition period and with regard to transactions covered by paragraph
  • By way of derogation from paragraph 2 and from Article 15 of Council Directive 2008/9/EC, refund applications that relate to VAT which was paid in a Member State by a taxable person established in the United Kingdom, or which was paid in the United Kingdom by a taxable person established in a Member State, shall be submitted under the conditions of that Directive at the latest on 31 March 2021.
  • By way of derogation from paragraph 2 and from Article 61(2) of Council Implementing Regulation (EU) No 282/20112 , amendments to VAT returns that were submitted in accordance with Article 364 or Article 369F of Directive 2006/112/EC either in the United Kingdom with regard to services supplied in Member States of consumption before the end of the transition period, or in a Member State with regard to services supplied in the United Kingdom before the end of the transition period, shall be submitted at the latest on 31 December 2021.