Brexit & VAT

Do you trade with customers and suppliers in other members of the EU? Then you might want to read on…

*all is subject to changes as and when a deal is negotiated

Following on from the news today that a Brexit deal has been struck – here is some initial guidance (subject to change) from HMRC

If you import and export GOODS to and from the UK/ EU then after 31st October you will need to consider the following:


  1. You will need to apply for an EORI number in order to export your goods
  2. Your customer/ importer will ALSO need an EU EORI number
  3. You will need to make export declarations – most people use the likes of DHL and Fedex to make the declarations which is what LeeP Accountants recommend
  4. VAT registered businesses will Zero-Rate sales of goods to EU businesses meaning no VAT is charged on these goods (as opposed to Reverse charge the VAT)
  5. Your recipient EU customer will have to pay import VAT and customs duties upon receipt of the goods into their country border
  6. Some businesses may be able to use the Common Transit Convention (CTC) if your goods go THROUGH the EU en route to a final destination meaning import VAT and customs is only paid once the goods reach their FINAL destination – DHL/ Fedex can help with this


  1. If you are not VAT registered you will now have to start paying import VAT and customs on all goods imported from the EU
  2. If you ARE VAT registered, subject to any deal changes, you can (probably) account for the VAT on your VAT return but you will still have to pay customs


  1. The VAT treatment on the supply of services to customers in the EU will depend on whether the EU customer is BUSINESS customer – if so, then you do NOT charge VAT
  2. If your customer is a NON-BUSINESS customer, then you charge them UK VAT at 20%

You can evidence if they are a business vs non-business customer by their provision of an EU VAT number

If you are unsure how Brexit impact your business finances, get in touch with LeeP Accountants for a conversation about how to become our client.

01733 699033

LeeP Accountants

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