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These rules continue to apply and VAT is chargeable on such services. For a UK business, the place of supply would be the UK. The Northern Ireland Protocol. This scheme will be available to both EU and third-country suppliers, including in NI and GB, selling goods direct to end customers in the EU. Prior to Brexit and during the transition period, the UK was part of the EU VAT regime. For supplies to businesses outside the UK, the place of supply is outside the UK, therefore there is no UK VAT … Selling services to the EU Place of supply rules remain unchanged – B2B where customer belongs, therefore EU. New VAT rules now apply for UK businesses trading with businesses in the EU. Supply of services to the EU under the general rule. We are one of the largest independent accountancy firms in Edinburgh where our business comprises a range of professional people and services all geared to helping you achieve to achieve your goals. Updated guidance for 'Professionals already working in an EEA country or Switzerland' section. 27th January 2021. Please follow this link to the updated blog:-, https://www.jsca.co.uk/updated-vat-implications-of-selling-services-to-the-eu-after-brexit/. The general rule is that the place of supply for B2B services is the place where the customer is situated. B2B or B2C Services to UK Customers . HMRC check list on exporting goods to the EU from January 2021. If you’re a UK business or professional providing services in the EU, Iceland, Liechtenstein, Norway or Switzerland, you’ll need to check the See the guides to providing services guides to each country for more information. The UK will no longer operate under the European Economic Area (EEA) regulations for cross-border trade in services from 1 January 2021. For supplies to businesses outside the UK, the place of supply is outside the UK, therefore there is no UK VAT chargeable. This blog is based on published guidance as at 15 January 2021. The Trade and Cooperation agreement will provide zero tariffs and zero quotas on all goods that … As we are still in the early stages of Brexit, further clarification of the rules and procedures may become available in the coming weeks and months. However, VAT rules relating to imports and exports to and from the EU have changed. This is no change from the situation pre-Brexit. This meant a UK business didn’t have to register for VAT in each EU country, and instead applied a common … You’ll need to have your UK professional qualification officially recognised if you want to work in a profession that is regulated in the EU, Switzerland, Norway, Iceland and Liechtenstein. Such businesses will have to register for a MOSS scheme in one of the continuing EU states (for example Ireland). You’ll need to do this even if you’re providing temporary or occasional professional services. Make export declaration. Until mutual recognition agreements have been put in place, UK-qualified professionals should continue following GOV.UK advice on using their qualifications in an EU member state. Under these rules, supplies of this type of services to recipients outside the EU are deemed to take place at the location of the customer. Currently, for services, “place of supply” rules determine the country in which you charge and account for VAT. Many UK businesses sell their goods or services to customers throughout the EEA, especially as the share of markets sold via e-commerce continues to increase. The general rule is that the place of supply for B2B services is the place where the customer is situated. Many Brexit changes took effect in January 2021. Jan 1, 2021 | Richard Asquith Since 1 January 2021, the end of the UK Brexit transition period, if you are an UK, EU or US seller of digital services, then you will need new VAT registrations to avoid being fined by the tax authorities. Irrespective of whether the customer for such services is in the EU or outside the EU, no VAT is chargeable. SELLING / BUYING SERVICES. Search ... where goods are sent from the UK to consumer customers in the EU, the seller is able to account for VAT either through a UK VAT registration or through distance selling registrations in the EU member states where the customers are located. Make your EU customer the importer of the record: Your EU customers will have to pay the freight delivery company the import VAT. Selling physical products to the UK after Brexit New VAT rules now apply for UK businesses trading with businesses in the EU. After 31 December 2020, all supplies of digital services to consumers in … Reading Time: 5 minutes This guest blog examines how trade in services will be affected after the UK has left the European Union. While the Agreement sets out clear expectations of the treatment and level of access to each Party’s domestic market, there will still be some changes for business as a result of no longer operating under European Economic Area (EEA) regulation covering cross-border trade in services. As the UK no longer forms part of the EU, there is no longer a requirement to complete an EC sales list. In accordance with the place of supply rules, the place of supply of services to a non-business customer is generally the place where the supplier is situated. For audit firms established and approved in EEA countries under the EU Audit Directive, a majority of the ownership and management bodies must be ‘qualified persons’. Options after Brexit: Pros and cons: 1. But means an awful seller experience and probably no repeat business. This blog will address the main changes which includes: You will no longer need to add UK VAT on goods sent to the EU from the UK, Local VAT will have to be paid instead. There are different rules if you’re a lawyer or an auditor. From 1 January 2021 this will no longer be possible. After Brexit, UK will be treated as a third country for EU VAT purposes so the following treatment which applies to non-EU supplies of services either inwards or outwards will apply. It is important for businesses to take specific advice relating to their own situation and activities. A: Businesses selling services to EU VAT registered customers will no longer need to complete EC sales lists from 1 January. Update to 'Business travel and entry requirements' section. To help us improve GOV.UK, we’d like to know more about your visit today. These changes are different for each sector and differ in each member state of the EU. We use some essential cookies to make this website work. Under existing rules, certain services, such as supplies in relation to UK land, transport, restaurant and catering services, hiring goods situated in the UK, broadcasting, and admission to events, conferences and meetings in the UK are treated as made in the UK and are currently liable to UK VAT even where the customer is in the EU. Read guidance on using data in your personal business or other organisation. As a result, a UK business supplying services to an EU business are not required to charge VAT. Updated the following sections to reflect the changes created by the UK and EU Trade and Cooperation Agreement: overview, trade regulations, VAT on sales of digital services, business travel and entry requirements, social security payments for employees, recognition of professional qualifications, and data transfer and GDPR. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. Most of the UK Government guidance has focus on the movement of goods, however, we strongly suggest to UK companies selling services either remotely or delivering those in any of the EU27 countries checks … Find out what to do if you’re an auditor. Create a new sales invoice as usual. (Every. Learn how Brexit affects EU salespeople and businesses who sell and provide services to the UK. The VAT treatment of services is subject to the rules relating to the place of supply of taxable services. It will take only 2 minutes to fill in. You can change your cookie settings at any time. As part of the wider UK-EU Trade and Cooperation Agreement, the free flow of personal data from the EU, Switzerland, Norway, Iceland and Liechtenstein to the UK will continue after 1 January 2021 for no longer than 6 months, until adequacy decisions come into effect. With Brexit occurring on 1 January 2021 those moving goods between the UK and EU should prepare for a variety of changes which will be introduced. If you’re supplying … HMRC guide on how to export goods from GB into the EU from January 2021. Businesses previously using the UK MOSS (Mini One Stop Shop) scheme for dealing with such supplies are no longer able to use this service. You can find out more information about individual countries in the selling services country guides. As part of the UK-EU Trade and Cooperation Agreement, the UK and the EU have agreed provisions to facilitate the movement of business travellers, including those who supply services. UK businesses buying services from EU countries previously used the reverse charge mechanism, accounting for both input VAT and output VAT on such supplies. One negative consequence of Brexit may be that, following the end of the Transition Period (31 December 2020), businesses selling to customers in the EEA will need to appoint a local Representative as customers’ “point of contact” for data protection matters in the EEA. One.) We will continue to complete your accounts, VAT, payroll and tax returns in a timely manner. All content is available under the Open Government Licence v3.0, except where otherwise stated, Establishing and structuring your business, Recognition of professional qualifications, guides to providing services guides to each country, advice about travelling to specific countries, pay National Insurance in the UK or social security contributions in the, European Commission’s Regulated Professions Database (REGPROF), using data in your personal business or other organisation, Providing services and travelling for business to the EU, Switzerland, Norway, Iceland and Liechtenstein: country guides, VAT rules for supplies of digital services to consumers, Germany: providing services and travelling for business, France: providing services and travelling for business, The media and broadcasting sectors and the EU, The arts, culture and heritage sectors and the EU, The sports and recreation sector and the EU, The telecoms and information services sector and the EU, The creative industries sector and the EU, The digital, technology and computer services sectors and the EU, Science, research and innovation sector and the EU, Electronics and machinery sector and the EU, Metals and other materials sector and the EU, Further education and apprenticeships and the EU, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, additional requirements on the nationality or residency of senior managers or directors, limits on the amount of equity that can be held by non-nationals, contact the government of the country where you own, manage or direct a company for more information. Most of the VAT changes after this date will affect a business selling goods. The UK and the EU have agreed a comprehensive free trade agreement. After Brexit, the general place of supply rules have not changed. Distance selling simplifications From 1 July 2021, an optional scheme is to be introduced covering the distance selling of goods with an intrinsic consignment value less than EUR 150. It will need to be recognised by the appropriate regulator for your profession in each country where you intend to work. Buy and sell services with the EU after Brexit From 1 January 2021, businesses in England, Scotland, and Wales will leave the EU but there are no changes to VAT rules for services. Digital Services: For U.K. sellers of digital services to EU consumers, the U.K. will no longer be a member of the EU Mini One-Stop-Shop, meaning that … Once the Brexit transition period is over, if you sell digital services to EU customers, you’ll no longer be able to use the UK’s VAT Mini One Stop Shop (MOSS) service to declare sales and pay VAT due in EU member states. HMRC guidance - Get an EORI number. We also use cookies set by other sites to help us deliver content from their services. Guidance for ‘Social security payments for employees’ updated. How has VAT changed after Brexit? The regulator’s decision to recognise your qualification remains valid. … This scheme will be available to both EU and third-country suppliers, including in NI and GB, selling goods direct to end customers in the EU. For businesses which export or import goods to or from Europe, you are probably wondering what best to do to protect your business. Basically, MOSS is the way to go. Find out if you need to pay National Insurance in the UK or social security contributions in the EU, Switzerland, Norway, Iceland and Liechtenstein. And then you must follow the different local rules and timelines for tax returns, which is an extra hassle. Business to consumer supplies of a professional, technical and intangible nature. Check the European Commission’s Regulated Professions Database (REGPROF) to find out if your profession is regulated. In the last few weeks, the Chamber has received a number of queries from members who currently sell services to the EU wondering what changes will come into place at the end of the transition period. You don’t have to do anything if your qualification has already been officially recognised by the relevant regulator in an EU country, Switzerland, Norway, Iceland and Liechtenstein. The VAT treatment of services is subject to the rules relating to the place of supply of taxable services. It will also no longer be a legal requirement to include your business customer’s EU VAT number on your invoices, although obtaining this information is generally considered to be a good business practice for a variety of reasons. First let’s consider B2B or B2C Services to UK Customers If you are a UK business supplying services that are usually subject to VAT to UK customers then it is super simple, and nothing changes. VAT after Brexit: How exporting to and buying goods from the EU works after transition period ends The UK is no longer bound to EU law, with the Brexit … Northern Ireland receives special treatment now Brexit has occurred. This is a complex area and the above comments are intended to provide only a broad outline of the position. Buying and selling services in the EU after the transition Although the UK left the EU in January, the same VAT rules as before will continue until the end of December 2020. … The UK-EU Trade and Cooperation Agreement concluded with the EU, ensures that UK firms in a variety of service sectors can continue to access the EU market, including as business travellers and cross-border services suppliers or investors, while being treated no less favourably than either EU businesses or competitors from third countries. The £8,818 annual threshold for cross borders sales of digital services to EU consumers no longer applies. Services provided by UK businesses will be regarded as originating from a “third country” (ie non-EU Member State). However, special rules apply to various types of services such as advertising services, services of consultants, engineers, consultancy bureaux, lawyers, accountants, and similar services, data processing and provision of information, other than any services relating to land. UK companies and limited liability partnerships that have their central administration or principal place of business in certain EU member states may no longer have their limited liability recognised. They must be EEA-qualified auditors and audit firms registered in the EEA. By office. If you have a UK business, you might face restrictions on your ability to own, manage or direct a company registered in the EU, Switzerland, Norway, Iceland and Liechtenstein. Social security payments for employees ’ updated your cookie settings at any Time the importer of the continuing EU (... Sell and provide services to customers that are based outside the UK but might you be impacted you. 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