Brexit - registering for VAT abroad - head about to explode!

Discussion in 'Accounts & Finance' started by rlellie14, Nov 27, 2020.

  1. rlellie14

    rlellie14 UKBF Newcomer Free Member

    21 0
    Hi. We export goods all round the world so thought we were all prepared for Brexit - ie we know the commodity codes, we are familiar with export docs/freight forwarders etc etc.
    But recently European customers are saying they will only deal with us if we pay their duties/VAT etc and so we need to be VAT registered in their country.
    Theoretically then I need to register for VAT in all EU countries we deal with and complete VAT returns in each of those countries monthly/quarterly.
    Is this correct?? My head is about to explode - 28 VAT returns instead of 1???!!!
     
    Posted: Nov 27, 2020 By: rlellie14 Member since: Oct 24, 2011
    #1
  2. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    824 132
    There are specialist companies who will help you register for VAT across the EU, but it will not be cheap.
    I understand your customers' logic; until 31 Dec, your sales to them will be free of VAT and Duty. But presumably they can recover the VAT due under the acquisition tax rules in their country from 1 Jan 2021.
     
    Posted: Nov 27, 2020 By: lesvatadvice Member since: Jul 7, 2011
    #2
  3. Spur Support Services

    Spur Support Services UKBF Regular Free Member

    242 52
    Take a look to the UK Export advice notes ("Prepare to export goods from Great Britain to the EU from 1 January 2021")

    The situation for you may change again during 2021. Import One Stop Shop ("IOSS") may be relevant to you, but I believe that it's introduction, together with the other e-Commerce simplification initiatives, has been delayed until 1 July 2021 due to Covid19.

    Have you explored whether your freight agents ready to account for overseas import VAT on transit from GB to the EU member states involved, where relevant? As you are used to exporting Globally, it does feel as if you have strong experience in this field.

    Will your EU customers accept confirmations that you will ship on a DDP basis? Are your EU business customers ready to accept Non-EU imports? Do they have EORI? Do your customers understand that they an recover any import VAT applied to the purchases?
     
    Posted: Nov 30, 2020 By: Spur Support Services Member since: Aug 21, 2020
    #3
  4. The Byre

    The Byre UKBF Legend Full Member

    11,089 4,754
    Set up an EU company and trade via that.

    Set up a company somewhere like Germany or Ireland or anywhere else and get a regular bank account there and run the whole thing from your head office. I can well imagine that there will be a lively trade in cross-border deals between NI and RoI.
     
    Last edited: Nov 30, 2020
    Posted: Nov 30, 2020 By: The Byre Member since: Aug 13, 2013
    #4
  5. accountforthis

    accountforthis UKBF Newcomer Free Member

    6 0
    edit!
     
    Posted: Dec 4, 2020 By: accountforthis Member since: Dec 3, 2020
    #5
  6. Newchodge

    Newchodge UKBF Big Shot Free Member

    15,402 4,227
    You must be unique!
     
    Posted: Dec 4, 2020 By: Newchodge Member since: Nov 8, 2012
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    28,193 3,474
    He's had the same 4 years as you and I.
    Not as if it was suddenly announced last week and we are all scrambling to put procedures in place, plan strategies and mitigate risk at short notice.

    There are lots of businesses out there that have made preperations, worked out different supply chains, even built up stocks to deal with delays.
    We've even had practice runs for leaving!
     
    Posted: Dec 4, 2020 By: Mr D Member since: Feb 12, 2017
    #7