Brexit. VAT Rules for buying or selling services within the EU – Post Brexit (updated)

New VAT rules on buying or selling services within the EU

You may have been burying your head in the sand until now, with Covid being the demon to deal with first. However there is no more putting it off, the withdrawal transition period from the EU has ended, Brexit has completed and the post Brexit rules are in place.

To help you know what you now need to do, we have prepared the below simple guide to the new rules for VAT from 1 January 2021 if you are buying or selling services cross border with the EU.

Buying services from the EU

• Place of supply rules remain unchanged – B2B where customer belongs, therefore UK. Reverse charge applies.
• Bear in mind any special rules that apply for place of supply.

Selling services to the EU

• Place of supply rules remain unchanged – B2B where customer belongs, therefore EU. Reverse charge applies.
• Bear in mind any special rules that apply for place of supply.
• EC Sales Lists no longer required.
• VAT MOSS for EU no longer available from 31 December 2020. If appropriate, must register for non-union VAT MOSS in an EU member state. This must be done within 10 days of the first sale from 1 January 2021.

Northern Ireland

• Services are not covered by the Northern Ireland Protocol.
• Place of supply rules apply as normal.

Please contact us if you have any queries in connection with the supply of services.

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