Brexit – VAT consequences of withdrawal from the EU
The Agreement on the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the EU (“Brexit”) came into effect on 1 February 2020. This means that the United Kingdom has thus formally exited the EU. In relation to VAT this means that the United Kingdom will most likely stand in a third-country relationship to the EU from 2021 on. Despite the existence of transitional arrangements, companies affected, with business relationships to the United Kingdom, should therefore examine the coming changes on the input and output sides for both supplies of goods and provision of services.