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How (if at all) would No Deal Brexit affect Eurozone VAT and taxes?

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    How (if at all) would No Deal Brexit affect Eurozone VAT and taxes?

    For those of us working for Eurozone clients, would a no deal Brexit have an immediate effect on how Vat and taxation work? Or would there be some transition period... Or maybe nothing would change here anyway?

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    #2
    Originally posted by d000hg View Post
    For those of us working for Eurozone clients, would a no deal Brexit have an immediate effect on how Vat and taxation work? Or would there be some transition period... Or maybe nothing would change here anyway?

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    HMRC warns no-deal Brexit costs to run to billions | Chartered Institute of Taxation

    VAT is the big one. Ignore the bit about it costing millions and read further down, it lays out the VAT related changes.

    CT and Income tax are unlikely to change dramatically as the UK will still want to attract companies and high net worth individuals, as well as encouraging multi-national / cross border trade so doing away with EU based rules on dual taxation is unlikely to happen.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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      #3
      Nothing is guaranteed but for B2B professional services there’s unlikely to be any change. It would remain outside the scope of UK VAT due to place of supply rules and the client will account for VAT under the reverse charge rules.

      Similarly B2B purchases of services will remain unaffected and subject to the reverse charge in the UK.

      The people that will have the biggest headaches are those dealing with goods and those supplying B2C digital services (who will need to register for VAT MOSS in an EU country once the UK equivalent stops operating).

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