Brexit will affect the UK business landscape. In this week’s podcast, I am going to take a look at your business and VAT after Brexit.
Last week’s podcast episode of I Hate Numbers looked at Brexit and your business. In this week’s episode, VAT takes centre stage.
Firstly let’s consider that from a VAT point of view countries outside of the UK will be the rest of the world. The 27 remaining countries in the EU will see us as a third country.
What will happen to VAT after Brexit?
VAT was introduced into the UK when the UK joined the EU on 01-January-1973. theory the UK could abolish VAT after Brexit, but this won’t happen. Too much money is raised. Most importantly, the government has indicated it will continue to have a VAT system in the UK.
VAT is here to stay. The changes and treatment on Your Business and VAT after Brexit will be determined by two main considerations
Firstly, if your business sells goods, services, or a combination
Secondly, what type of customers will you have in the EU, businesses (B2B), or consumers (B2C), or a combination.
Listen to find out more
Goods and services
As a result of the UK leaving the EU there is a difference in treatment between goods flowing between the UK and the EU. That is to say, those movements will be described as imports and exports. Listen to find out more about
- Vat, duties, customs declarations, forms and procedures
- VAT postponement scheme
- Storing inventory
- Distance Selling Rules
VAT treatment on selling your services
Firstly, to figure out what will happen with Your Business and VAT after Brexit we must understand the place of supply rules. As a result, this lets us know whether
- VAT is due
- Whether it’s our business or customer who pays for and deals with the VAT, in terms of accounting and payment
- Fundamentally nothing changes in principle post Brexit.
- I also talk about the reverse charge procedure. Under the reverse charge procedure, your customer has the responsibility to account for VAT on your sales.
Above all, listen to find more
VAT and Brexit and selling digital products
On 1st January 2020 if you sell any digital products into the EU Business to Consumer, then VAT is charged at the rate due in that EU country, VAT registration and payment follow. For instance, if I sell digital downloads of I Hate Numbers and someone in France bought a copy, I would need to charge them French VAT.
Register with each country and comply with each country’s local VAT rules and timings for administering and paying VAT.
MOSS makes your life easier, who wouldn’t want that? On the other hand, you can choose from one of the 27 EU to register in and pay your VAT.
Most importantly Your Business and VAT after Brexit will be different but not radically different to what we have now.
If you sell digital products and want to find out more about how EU VAT will affect your business, what to do, take out the stress then listen to our Live Recorded Webinar. Making digital sales means you need to up your game when it comes to using the right systems and software. Life is hard enough without obsessing over tax rules at home and abroad. An easy to use, an intuitive helping hand can be found with Quaderno. It calculates sales tax, VAT, and GST (Gross Sales Tax) for you. Quaderno, good not just for the EU and VAT, but for dealing with VAT and sales taxes throughout the rest of the world,
In this episode
- Understanding the treatment of VAT and goods between the UK and EU
- Appreciating the VAT treatment of services
- Learning about the place of supply rules
- Hearing about registering for EU VAT and MOSS
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make you money, survive and thrive