what happened next!
Brexit Statement
Following the UK’s decision to leave the EU, there was confusion with EU member states on the VAT reporting rules purchasing goods from the UK.
As of 31 January 2021, the United Kingdom became a third country for VAT purposes, and the EU reverse charge rules for the supply of goods sent to/from the UK no longer applies.
EU reverse charge after Brexit
This simplified the VAT process for cross border sales and cancelled out the VAT due on the buyer's accounts. After Brexit, businesses based in Great Britain (England, Scotland, and Wales) can no longer apply the reverse charge to EU sales.
Sales to EU business customers (previously known as dispatches) will become exports. For VAT purposes, the supply will continue to be zero-rated and evidence of the movement must be kept by the seller. There will be changes to the reporting requirements for these supplies.
Sales to EU consumers will also become exports, following the same general rules as for business customers.
