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Brexit impact on VAT and other taxes

The UK Brexit transition period ended on 31 December 2020. New rules apply from 1 January 2021. This page brings together guidance and news from ICAEW, as well as externally-produced resources providing practical information on changes to VAT treatment, duties and other taxes.

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Need to know

UK VAT after the transitional period
  • Helpsheets and support
  • 08 Oct 2019
ICAEW guidance to help accountants and businesses understand how the UK’s VAT rules are changing from 1 January 2021.
Exclusive TAXguide 20/20 New VAT ecommerce rules in EU from 1 July 2021 – how will they affect UK businesses?
  • Technical release
  • 23 Dec 2020
Major VAT changes are being introduced by the EU on 1 July 2021, just six months after the end of the UK’s transitional deal. Neil Warren provides guidance on the key changes that will take place.
Brexit checklist
  • Helpsheets and support
  • 19 Oct 2020
Read our quick-start guide, outlining a variety of areas that could impact your business post Brexit.
Post-Brexit recognition of professional qualifications
  • Helpsheets and support
  • 09 Mar 2021
ICAEW is committed to helping members seeking professional recognition for the pursuit of regulated activities, such as statutory audit, in the European Economic Area (EEA) under the post-Brexit arrangements.

Latest news and insights

Further postponement of border controls for goods imported from the EU
  • Article
  • 03 May 2022
No additional border controls until the end of 2023.
Get ready for full customs declarations for EU imports and exports
  • Article
  • 01 Dec 2021
Border controls with the EU are being phased in following the UK exiting the EU’s single market and customs union. The next change will apply from 1 January 2022, as explained by ICAEW’s Tax Faculty.
Freeports: business needs greater clarity
  • Article
  • 31 Aug 2021
ICAEW is calling on the government to add much-needed meat on the bones of its post-Brexit freeport strategy, following concerns of a lack of clarity about how freeport areas will work in practice.
Duty-free limits are back for summer 2021
  • Article
  • 23 Aug 2021
Since 1 January 2021 when the UK left the EU, the benefit of a “booze cruise” has been severely limited. It is no longer possible to simply load up wine purchased from your favourite French vineyard, or indeed a superstore in Calais, and return to the UK without a few extra considerations.
Tax news in brief
  • Article
  • 07 Jul 2021
Highlights from the broader tax news week ending 7 July, which includes: a reminder of the 31 July deadline for tax credit renewals; links to new SIs correcting anomalies in EU-exit VAT legislation; a deadline extension for non-EU businesses making VAT repayment claims; a new online form for companies applying for de-minimis extended loss carry-back claims and confirmation that Northern Ireland business can use the one stop shop union scheme from 1 July.
UK manufacturers operating within freeports could face tariffs
  • Article
  • 12 May 2021
The UK government admits that post-Brexit trade deals include clauses that could prevent companies benefitting from freeport tax breaks, affecting business worth up to £35bn annually.
Grants for SMEs needing advice on imports and exports
  • Article
  • 24 Feb 2021
Small and medium-sized UK businesses needing support on customs duties and VAT will be able to apply to the SME Brexit Fund for a grant of up £2,000 to pay for professional advice or training, confirms HMRC.
ICAEW technical round-up: February 2021
  • Article
  • 23 Feb 2021
24 February 2021: This month’s top technical stories on ICAEW Insights include updates on self assessment penalties, IR35 changes and a major change to the government’s Kickstart Scheme.

Guides and FAQs

Brexit checklist
  • Helpsheets and support
  • 19 Oct 2020
Read our quick-start guide, outlining a variety of areas that could impact your business post Brexit.
UK VAT after the transitional period
  • Helpsheets and support
  • 08 Oct 2019
ICAEW guidance to help accountants and businesses understand how the UK’s VAT rules are changing from 1 January 2021.
Exclusive Engagement letters helpsheet
  • Helpsheets and support
  • 01 Jul 2016
  • DOCX (231kb)
Technical helpsheet providing sample wordings to help you draft engagement letters for a variety of typical engagements for both corporate and non-corporate clients. Includes full text and supplementary schedules.
Exclusive VAT post Brexit
  • Helpsheets and support
  • 18 Jan 2021
FAQ on how VAT rules have changed for British companies selling UK stock globally, now that the United Kingdom has left the European Union.
Government guidance on Brexit
  • Helpsheets and support
  • 08 Mar 2019
  • PDF (262kb)
The UK government and the European Commission (EC) have published guidance to help citizens and businesses understand the potential implications of the UK leaving the EU. This overview, part of ICAEW's Know-How series, helps you navigate through this guidance. Government guidance is expected to continue to evolve.
EU law and business: Brexit implications
  • Helpsheets and support
  • 29 Nov 2018
  • PDF (291kb)
Much Brexit guidance is concerned mainly with trade in goods, but there are a variety of other areas of EU law that also affect business. Our Know-how guides gives you a framework to understand these implications. It will be particularly relevant for services businesses seeking to assess how they are impacted.
Taxation (Cross-border Trade) Act 2018
  • Helpsheets and support
  • 04 Oct 2018
  • PDF (526kb)
The Taxation (Cross-border Trade) Act 2018 received Royal Assent on 13 September 2018. The Act seeks to replace the current EU Union Customs Code and amend current UK VAT and excise duty laws in connection with the withdrawal of the UK from the EU.
Exclusive TAXguide 21/17: The tax implications of Brexit
  • Technical release
  • 23 Aug 2018
Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.

Webinars

Exclusive The UK and DAC6 post-Brexit - where are we now?
  • Webinar
  • 19 Jan 2021
In this webinar ICAEW Tax Faculty Business Tax Manager, Richard Jones, is joined by Jo Myers and Ariana Kosyan of EY to get you up to speed with the current position and discover the likely future shape of disclosure requirements for UK advisers and their clients.
The UK and DAC 6 post-Brexit - where do we go from here?
  • Webinar
  • 19 Jan 2021
This webinar from the Tax Faculty will help if you or your clients have transactions with Europe. Watch the webinar to discover the likely future shape of disclosure requirements for UK advisers and their clients.
VAT changes in Europe
  • Webinar
  • 10 Dec 2020
This webinar runs through post-Brexit VAT changes for overseas sellers exporting to Europe.
Customs and VAT post the transitional period webinar
  • Webinar
  • 30 Oct 2020
This webinar will cover some of the practical points that businesses and their advisors should be aware of in relation to goods moving between the UK and EU.
An Exporter's Guide to Brexit
  • Webinar
  • 21 Oct 2020
This webinar, in partnership with MHA, delivers insights into various types of export supply chain scenarios and highlights areas that UK businesses must consider as part of their Brexit planning to avoid unnecessary delays or compliance failures.
An exporters guide to brexit
  • Webinar
  • 21 Oct 2020
  • PDF (1,803kb)
This webinar, in partnership with MHA delivers insights into various types of export supply chain scenarios and highlights areas that UK businesses must consider as part of their Brexit planning to avoid unnecessary delays or compliance failures

External resources

VAT on movements of goods between Northern Ireland and the EU
  • Website
  • 07 Sep 2021
Guidance on how to charge and account for VAT on the movement of goods between Northern Ireland and EU member states. It cancels and replaces the previous VAT Notice from December 2020.
EU VAT e-commerce package
  • Website
  • 13 May 2021

Paper from HMRC on the EU rule changes from 1 July 2021 relating to the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland.

Brexit: The practical experience from both sides of the channel
  • Website
  • 13 May 2021
Webinar on 25 May 2021 with specialists from the UK and EU addressing tax and legal implications arising post-Brexit. It covers potential solutions for VAT and direct tax issues, UK freeport proposals, risk of UK taxable income, cross-border staff, product safety and marking, IP, and contracts.
How to report EU sales made on or before 31 December 2020 for VAT
  • Website
  • 31 Dec 2020
Businesses have until 21 January 2021 to submit EC Sales Lists for sales made on or before 31 December 2021.
Value Added Tax EU Exit Transitional Provisions
  • Website
  • 23 Dec 2020
Guidance on the VAT treatment of transactions or movements of goods which span the end of the transition period. It covers goods, fulfilment houses, services, call-off stock, and financial services.
Customs, VAT and Excise UK transition legislation from 1 January 2021
  • Website
  • 16 Dec 2020

HMRC collection of EU Exit legislation including Statutory Instruments, tariff Statutory Instruments and reference documents, and customs notices that have the force of law.

Tax information and impact notes: UK Transition
  • Website
  • 10 Dec 2020

HMRC tax information and impact notes (TIINs) on tax policy changes relating to EU exit. TIINs give an explanation of the policy objective and details of the tax impact.

Modernising VAT for cross-border e-commerce
  • Website
  • 05 Dec 2017

Information from the European Commission on the modernisation programme that includes the new VAT e-commerce rules that will come into force on 1 July 2021 and which affect everyone in the e-commerce supply chain for cross-border supplies to consumers in the EU.