Brexit and VAT - No Immediate Changes

Gary Hughes

Tax Manager

The UK is leaving the EU at 11pm tonight (31st January 2020). This will potentially impact any clients that trade with the EU.

As the UK has agreed to leave the EU with a deal, which includes a transition period until 31st December 2020, nothing will change in terms of VAT immediately. During the transition period the UK will remain part of the single market and customs union meaning that the UK will continue to follow the rules regarding Intra-EU movement of goods.

This means that clients can continue to zero-rate their sale of goods as long as they have their customers EU VAT number, the goods are sent or transported to another EU member state and they keep valid commercial evidence that the goods have been removed from the UK within the relevant time limits. The transition period also means that the client must continue to submit EC sales lists monthly or quarterly as appropriate.

Clients have been advised to obtain an EORI number ahead of the EU exit in case the UK left the EU with no deal. They should keep this reference as they are still likely to need this at the end of the transition period.

During the transition period businesses will still be able to submit valid EU refund claims via HMRC, and those businesses that are registered for VAT MOSS because they supply B2C supplies of digital services to EU consumers, may continue to submit VAT MOSS returns for the time being in the UK, rather than needing to register in an alternative EU member state.

If you need support with any Brexit related query, please contact our specialist tax team on 0161 476 8276 or email


The information contained herein is of a general nature and is not intended to be received as formal professional advice. Whilst we endeavour to provide accurate information, there can be no guarantee that the information is accurate as of the date it is received, or that it will continue to be accurate in the future, due to legislative changes. It is therefore important that before you act upon any information contained herein you seek appropriate professional advice to take account of your exact circumstances.

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