Brexit: VAT Requirements for EU Deliveries

Following the end of the Brexit transition period on 1st January 2021 we are working closely with our customers to ensure that delivery of goods into the EU are fulfilled in line with the new customs and VAT requirements.

In 2019 we established a trading entity in the Netherlands (Westbase B.V.) and also registered our UK entity (Westbase Technology Limited) for VAT in the Netherlands. This has allowed us to continue transacting within the EU, helped avoid unnecessary customs delays on EU deliveries and has provided added flexibility post-Brexit.

However, if your business is based outside of the EU and you wish to order goods to EU destinations there are now additional requirements.

 

Requirements

In order to avoid unrecoverable VAT charges arising from the transaction, we will require your EU VAT registration number for all EU shipments.

In the short term, if you do not already have an EU VAT registration we will work closely with you to understand whether there are other options available.

We recommend you seek 3rd party advice to better understand how EU VAT registration would impact your business and how it may enable you to trade with our Netherlands based operations.

 

Government grant for VAT advice

Government funding may be available to assist you in meeting these requirements. The SME Brexit Support Fund is a recently announced £2,000 grant for small and medium businesses who require VAT or customs advice post-Brexit. Further information can be found at the following link:

https://www.gov.uk/guidance/grants-to-help-small-and-medium-sized-businesses-new-to-importing-or-exporting

 

Moving Forward

Whilst we appreciate these new requirements may be restrictive in some instances, we are available to discuss any specific requirements. Please send any questions on this matter to: accounts@westbase.io

 

Disclaimer

The above information does not constitute legal advice and is provided for general information purposes only. We recommend specialist advice is sought before any action is taken.

 


 

VAT Requirements: Non-UK Customers Requesting UK Deliveries

Following the end of the Brexit transition period on 1st January 2021 we are working closely with our customers to ensure that all deliveries are fulfilled in line with the new customs and VAT requirements.

If your business is based outside the UK and you wish to order goods to be delivered to UK destinations there are new rules and regulations of which you will need to be aware.

 

Requirements

A VAT liability will arise at a rate of 20% for goods delivered into the UK. Depending on the exact nature of the transaction this liability will either arise at the point of importation into the UK or will be applied to our invoices. If you wish to reclaim these VAT charges it is likely you will need to register your company for VAT in the UK.

If your account is currently held with our Netherlands entity (Westbase BV) it may also be necessary for you to set up an account with our UK entity (Westbase Technology Limited) for any UK deliveries.

In the short term, if you do not already have a UK VAT registration we will work closely with you to understand whether there are other options available.

We recommend you seek 3rd party advice to better understand how UK VAT registration would impact your business and how it may enable you to trade with our UK based operations.

 

Moving forward

Whilst we appreciate these new requirements may be restrictive in some instances, we are available to discuss any specific requirements. Please send any questions on this matter to: accounts@westbase.io

 

Disclaimer

The above information does not constitute legal advice and is provided for general information purposes only. We recommend specialist advice is sought before any action is taken.