VAT post Brexit
Q: My client sells goods from GB stock (no stock held in Northern Ireland) to businesses and consumers globally. What has changed post Brexit?
A: Post Brexit, sales of goods shipped from GB to a non-UK destination can qualify for UK VAT at 0% (irrespective of the customer's business or VAT status) as long as the seller has the appropriate evidence of removal from the UK (as explained in detail in HMRC's VAT Notice 703 on exports). For sales to the EU there will no longer be any Intrastat or EC Sales List reporting requirements and no distance selling considerations, although there may be export procedural requirements; these can vary depending on the nature of the goods. As with exports pre-Brexit, the seller will however need to give consideration to contractual terms about which party (seller or customer) is responsible for the import into the destination country. If the UK seller is responsible for the import, it may have customs duty, import VAT and VAT registration (or other tax) obligations to deal with in the destination country (for which advice should be sought from tax specialists in that country).