The EU VAT Office has issued an update on how to treat VAT on transactions with EU based businesses in the event of a no deal in March.
Members who deal with EU customers and suppliers should make themselves aware of the latest information to ensure compliance when dealing with EU invoices in the event of a ‘no deal’ exit from the EU.
You can find the full newsletter update here.
In the absence of a Withdrawal Agreement, which would put in place a transition period until the end of 2020 (with the possibility of an extension foreseen in the Withdrawal agreement), the UK will be treated as a non-EU country for customs purposes as of 30 March 2019.
It is now urgent that businesses in the EU start preparing for the UK’s withdrawal if they have not yet done so.
All businesses concerned have to prepare, make all necessary decisions, and complete all required administrative actions, before 30 March 2019 in order to avoid disruption.
To assist companies in doing so, the European Commission has prepared a dedicated webpage with a list of practical tips and recommendations, a “Brexit Checklist for traders” and a “Brexit Customs guide for businesses”.