HMRC has published two VAT policy papers to help businesses prepare for the end of the Brexit transition period:
Accounting for VAT on services between the UK and EU member states from 1 January 2021 explains how VAT will be charged and accounted for on services supplied from the UK to the EU. The VAT rules for supplies of services between the UK (including Northern Ireland) and EU member states will be the same as the current rules for supplying services from the UK to outside of the EU. For supplies of digital services, UK businesses will no longer be able to use the VAT MOSS system in the UK and the current EU-wide VAT threshold for supplies of digital services to consumers will cease to apply to UK businesses. This means that EU VAT will be due on all supplies of digital services to EU consumers, regardless of the value of the sales.
Goods moved between Great Britain and the EU from 1 January 2021 explains how VAT will be charged and accounted for on movements of goods from Great Britain (ie excluding Northern Ireland) to the EU, and how businesses should account for VAT on goods they bring in from EU member states. The VAT rules applying for supplying goods between GB and EU member states will be the same as the current rules for supplying goods from the UK to outside of the EU. Transactions involving the movement of goods between Northern Ireland and the EU will be subject to the Northern Ireland Protocol.
HMRC has published two VAT policy papers to help businesses prepare for the end of the Brexit transition period:
Accounting for VAT on services between the UK and EU member states from 1 January 2021 explains how VAT will be charged and accounted for on services supplied from the UK to the EU. The VAT rules for supplies of services between the UK (including Northern Ireland) and EU member states will be the same as the current rules for supplying services from the UK to outside of the EU. For supplies of digital services, UK businesses will no longer be able to use the VAT MOSS system in the UK and the current EU-wide VAT threshold for supplies of digital services to consumers will cease to apply to UK businesses. This means that EU VAT will be due on all supplies of digital services to EU consumers, regardless of the value of the sales.
Goods moved between Great Britain and the EU from 1 January 2021 explains how VAT will be charged and accounted for on movements of goods from Great Britain (ie excluding Northern Ireland) to the EU, and how businesses should account for VAT on goods they bring in from EU member states. The VAT rules applying for supplying goods between GB and EU member states will be the same as the current rules for supplying goods from the UK to outside of the EU. Transactions involving the movement of goods between Northern Ireland and the EU will be subject to the Northern Ireland Protocol.
