VAT implications of leaving the European Union

With effect from 1 January 2021 there are several changes to the VAT rules for cross border sales and purchases of goods and services. Great Britain, comprising England, Wales and Scotland, has now withdrawn from the EU’s VAT regime. Northern Ireland remains in the EU’s VAT regime as far as goods are concerned, but not for services. This means that cross border transactions now include, for goods, movements of goods between Great Britain and Northern Ireland, including potentially transfers of own goods, for example between a branch in Great Britain and a branch in Northern Ireland.

To facilitate the flow of goods and the collection of VAT, the government has introduced several changes to the UK’s import VAT regime read more