Potential Changes to the UK VAT System Post Brexit

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Background

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.

 

Details

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. 

  1. Place of supply rules for UK businesses supplying services into the EU
  2. EU VAT Registration Number Validation accessed via the EU Commission’s website 
  3. EU VAT refund system 
  4. UK businesses importing goods from the EU 
  5. UK businesses exporting goods to EU businesses

How PwC can help

Contact us

Keith Lawson

Indirect Tax Director, PwC United Kingdom

Matthew Beasley

Indirect Tax Sr. Associate, PwC United Kingdom

Karen LoDico

Tax Partner, PwC US

Gary M. Pogharian

Partner, PwC US

Carole Symonds

Partner, Law Firm Services Tax Leader, PwC US

Gregg Sincoff

Tax Managing Director, PwC US

Nancy Regan

Tax Director, PwC US

Ran Wei

Director, PwC US

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