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Online course The School of Salamanca - Sign up: amazonia.fiocruz.brIn this text we summarise the most important VAT changes.
During this period, goods transactions involving the UK were recognized as intra-community ones. As of January that is no longer possible.
The goods travelling between the UK and the EU are treated as exported goods or imported goods. When it comes to transactions in services, there are not many changes. The place-of-supply rules generally remain unchanged.
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However, what needs to be considered is an appropriate way of reporting supplies and purchases of services in VAT reports. More details about the new approach towards goods and service transactions are to be found in Chapter 2 of our Brexit Series. Consequently, XI VAT IDs are required for transactions in goods involving the territory of Northern Ireland, as supplies from EU countries to Northern Ireland and vice versa will be treated as intra-community transactionsnot as exports and an imports.
However, this transitional period might be extended. That is one of the biggest changes in formal requirements caused by Brexit. A fiscal representative is generally jointly and severally liable for its client tax liabilities. Salamanca Chapter 1 Summary
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Another formal change is about the foreign VAT refunds procedure. However, if a non-EU company applies for a refund in an EU country it is required Salamanca Chapter 1 Summary use the so-called 13 Directive, which is much more complex. What Salmaanca more, if there is no reciprocity agreement between any particular EU country and non-EU country, then it is impossible to get the refund. These include the possibility to settle import VAT using the cashless method postponed accounting and different ways of reporting transactions with the UK in VAT reports.
You must be logged in to post a comment. New approach to goods and service transactions Between 1 February and 31 Decemberand although UK was already out of the EU, there were transitional rules in force regarding VAT.]
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