Brexit and VAT

GiGoGo

I make things happen
Business Angel
Friend of mine told me that in case of Brexit, UK won't be consider a EU VAT country so if I create an UK LTD I could send invoices to the rest of EU without VAT

Can anyone confirm this?

Thanks
 

Reboot

Building Trust
Entrepreneur
Friend of mine told me that in case of Brexit, UK won't be consider a EU VAT country so if I create an UK LTD I could send invoices to the rest of EU without VAT

Can anyone confirm this?

Thanks
That's the current situation, if you send an invoice from an EU country to another EU country the VAT rate applied is 0%.
 

Sols

Trusted Member
Business Angel
We don't know what will happen after Brexit until it's decided how Brexit will be done.

Right now, as @Reboot says, you have VAT reverse charge for intra-community invoices if both parties are VAT registered.

If UK becomes what EU calls a third country, it would be the same situation as any non-EU company, meaning wouldn't need to charge VAT when selling to UK (unless new UK law is implemented) but you should register for VAT in the EU member states you sell to (although most non-EU companies don't, yet, due to lax enforcement).

There is also a lot of nuance to consider. VAT is a huge mess and every attempt to simplify it makes it worse.
 

Reboot

Building Trust
Entrepreneur
We don't know what will happen after Brexit until it's decided how Brexit will be done.

Right now, as @Reboot says, you have VAT reverse charge for intra-community invoices if both parties are VAT registered.

If UK becomes what EU calls a third country, it would be the same situation as any non-EU company, meaning wouldn't need to charge VAT when selling to UK (unless new UK law is implemented) but you should register for VAT in the EU member states you sell to (although most non-EU companies don't, yet, due to lax enforcement).

There is also a lot of nuance to consider. VAT is a huge mess and every attempt to simplify it makes it worse.
Correct, if you invoice from an EU country to a non-EU country the VAT rate is also 0%, just the accounting is different.
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
Damn people are quick to find opportunity....lol.

Never mind VAT I am interested in UK's plan to start establishing Free Trade Zones as Boris said he wants to do after Brexit.

My prediction is FTZ's in UK will be a way for non-doms in UK to bring their money into UK tax free and invest it in FTZ's and avoid tax as technically FTZ investment won't be considered to have entered the UK and hence no remittance actually occurs - the rich are cunning sponsors of brexit ca#"!.

https://www.britishports.org.uk/system/files/documents/crowe_-_free_trade_zones.pdf

----
FTZs provide an opportunity for the UK to continue to attract foreign investment focussed on the wider European market with the associated employment that this attracts. To attract this investment the UK would have to offer incentives that at least compensate for the trade barriers imposed by the EU. Given the need to maintain core taxation receipts these incentives in the form of reduced corporation tax should be offered in clearly defined geographic areas preferably near a port or airport. Imports of goods to the UK market from FTZs should be subject to duties to prevent unfair competition in local markets
----
 

GiGoGo

I make things happen
Business Angel
Damn people are quick to find opportunity....lol.

Never mind VAT I am interested in UK's plan to start establishing Free Trade Zones as Boris said he wants to do after Brexit.

My prediction is FTZ's in UK will be a way for non-doms in UK to bring their money into UK tax free and invest it in FTZ's and avoid tax as technically FTZ investment won't be considered to have entered the UK and hence no remittance actually occurs - the rich are cunning sponsors of brexit ca#"!.

https://www.britishports.org.uk/system/files/documents/crowe_-_free_trade_zones.pdf

----
FTZs provide an opportunity for the UK to continue to attract foreign investment focussed on the wider European market with the associated employment that this attracts. To attract this investment the UK would have to offer incentives that at least compensate for the trade barriers imposed by the EU. Given the need to maintain core taxation receipts these incentives in the form of reduced corporation tax should be offered in clearly defined geographic areas preferably near a port or airport. Imports of goods to the UK market from FTZs should be subject to duties to prevent unfair competition in local markets
----
Thanks, that's what I was looking for
 

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