by Dries Torreele and Bert Vandorpe
Brexit: no intra-community supply from 1 January 2021
On 1 February 2020, the United Kingdom officially left the European Union. However, we subsequently entered a transition period that ends on 31 December 2020. Brexit’s consequences will therefore only become truly apparent from 1 January 2021. What does this mean in practical terms for enterprises that supply goods to UK customers?
B2B sales
From 1 January 2021, sales of goods in a B2B context will be considered exempt export transactions. A Belgian seller wishing to apply this exemption must be able to demonstrate the goods’ actual transport into the United Kingdom. The export declaration (EX-A) will need to note the supplier’s VAT number in field 44.
B2C sales
From 1 January 2021, sales of goods in a B2C context will no longer be considered ‘distance selling’. Previously, Belgian sellers could still charge Belgian VAT on sales to private individuals in the UK as long as these did not exceed the GBP 70,000 threshold. Starting next year, such sales will become VAT-exempt exports as well.
Dries Torreele
Certified Tax Advisor dries.torreele@vdl.be
Bert Vandorpe
Senior Advisor Tax bert.vandorpe@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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