Brexit. VAT rules for services post Brexit

A simple guide to the new rules

We all know it’s coming, but any plans for Brexit have probably been messed up by Covid taking precedence and the focus on survival of your business.

To help you, we have prepared a simple guide to the new rules for VAT from 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.
• Beard 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 get in touch if you have any queries in connection with the supply of services.

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