On August 23, 2018, the UK Government published its technical papers that sets out its views on how the UK VAT system will operate if the UK leaves the EU on March 29, 2019 without a Brexit deal. The papers confirm that the UK will continue to have a VAT system post Brexit and the VAT rules relating to UK domestic transactions will continue to apply as they do now. However, there will be changes to VAT rules involving movement of goods intra-EU, which will be treated as imports and exports.
The papers further confirm that there will be no change to the VAT rules on the type of legal services that Law Firms provide to their clients. However, with the potential changes to the VAT rules involving movement of goods intra-EU, Law Firms need to be aware of these potential changes when they move goods, such as computer equipment between offices since additional documentation and reporting requirements will apply.
The following changes, specific to Law Firms may apply, but only if the UK exits the EU without a deal.
Indirect Tax Director, PwC United Kingdom
Indirect Tax Sr. Associate, PwC United Kingdom
Gary M. Pogharian
Partner, PwC US
Partner, Law Firm Services Tax Leader, PwC US
Tax Managing Director, PwC US
Tax Director, PwC US
Director, PwC US