It’s done. Following a process that began in March 2017, the Withdrawal Agreement was ratified in two rounds by the European Parliament last week and received the final formal approvals from the European Union this past Thursday. The Brexit represents the end of an era as the UK reverses 47 years of integration with the European mainland and leaves the European Union.
How does this impact businesses?
Trade talks will take place during the remainder of this year to determine the myriad details of Britain’s departure from the EU. Over the next 11 months, the UK and the EU will determine their future trade relationship, according to a set timeline.
During the transition period – which ends on 31 December 2020 unless an extension is granted by 30 June 2020 – a new VAT refund system is likely to be agreed upon between the EU and the UK. Existing intra-EU VAT rules for the supply of goods and services will apply throughout the transitional period. According to the HMRC website, the electronic EU VAT refund portal will remain open during the upcoming transition period.
For more information and guidance on VAT refunds for UK businesses purchasing goods and services from other EU countries, or EU countries requesting VAT refunds from the UK, click here.
VATBox is continuously monitoring important legal changes that impact the VAT refund process.
We will publish these changes through our newsletter as much as possible, or your dedicated account manager will contact you with personalised information tailored to your needs.
On behalf of
the VATBox Tax Knowledge Team