Navigating the significant changes to the VAT and Duty rules that have arisen in relation to trade between the UK and the EU.
We have the expertise and experience advising businesses selling to or buying from EU countries, including advice on how to comply with new procedures and how to minimise the impact of recent changes.
We have also seen recent significant changes to the cross border supply of services, and some of these may result in UK businesses having to register for VAT in one or more EU countries, particularly businesses providing services to consumers. We can assist service providers to navigate their way through the new rules and manage their VAT position efficiently.
The client was a UK-based skip hire company, whose clients typically hired skips for projects in London.
Prior to Brexit, the client considered their supplies to a Spanish client as being outside the scope of UK VAT since the client was located outside the UK.
Post-Brexit, they maintained this treatment for B2B transactions because it seemed that there were no alterations in this regard. However, HMRC challenged our client’s treatment arguing that UK VAT should have been charged.
We reviewed the position (including the effect of Brexit on the VAT treatment) and although the use of enjoyment rules meant that post-Brexit supplies should be subject to UK VAT, the pre-Brexit supplies were correctly treated as outside the scope of UK VAT.
The potential VAT assessment was reduced significantly, and the client could manage the position with their Spanish client.
We had a client engaged in a business-to-business (B2B) contract to directly supply goods from Italy to Germany.
The challenge in this case was that the client, based in the UK (without any EU presence), was shipping goods directly from Italy to Germany. When the UK was in the EU, a UK business could avoid an EU VAT registration using the ‘triangulation’ simplification (the EU customer accounting for VAT on their behalf). This was no longer possible since Brexit.
We couldn’t make the issue go away, but we advised them on how the problem could be minimised by registering for VAT in a convenient EU country and how this would enable triangulation.
As a result, our client could go ahead with the contract (and other similar ones in future).
Brexit introduced significant changes to how VAT applies to goods and services between the UK and EU. Businesses must now handle import/export rules, potential EU VAT registrations, and updated documentation requirements. We guide clients through these changes to help them stay compliant and avoid unnecessary costs.
Possibly. If you’re supplying services to EU consumers or shipping goods within the EU without an established presence, local VAT registration may be required. We assess your situation and advise on the registration requirements and ongoing compliance.
Triangulation allows businesses in different EU countries to simplify VAT on B2B cross-border transactions. Post-Brexit, UK businesses can no longer benefit from this unless they register for VAT in an EU country. We help determine if registration is worth it and how to proceed.
It depends on whether you’re supplying B2B or B2C, the type of service, and where it’s used or enjoyed. We analyse the transaction details and provide guidance on where VAT is due and how to handle it correctly.
Yes, exports of goods from the UK can be zero‑rated for UK VAT, provided the goods are sent to a destination outside the UK and you meet HMRC’s conditions (including exporting the goods and obtaining/retaining valid proof of export within the required time limits). There is no requirement for the customer to be VAT‑registered (in the EU or elsewhere). Accurate record‑keeping and evidence of export are essential. We help ensure your documents meet HMRC standards
We provide technical analysis, review historical and current legislation, and represent your position clearly to HMRC. Our goal is to reduce or eliminate VAT assessments and help you move forward with confidence.
