- Following the 2016 referendum vote and the formal withdrawal notification, the UK should in principle not be subject to European legislation as from 30 March 2019.
- Businesses have to be aware of the indirect tax repercussions of Brexit, as detailed in an official Notice published by the EU Commission on 30 January 2018.
- Among the impacts: acquisitions of goods from the UK to the EU will be treated as imports on which VAT will have to be self-assessed by the EU importer; the granting of a VAT deduction right for EU-based financial and insurance companies who provide services to the UK; VAT MOSS registration no longer possible in the UK; new procedure for UK VAT refunds; possible custom controls and guarantee requests with the application of custom duties and the lodging of custom declarations.
- Businesses should therefore be cognizant of additional time, cost and administrative burdens that these changes may have on their operations and plan accordingly, consulting their tax adviser when necessary.
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