Get invite to our events

Get invite to our events

Members News Brexit Accountants Export/Import

Brexit transition causes confusion with VAT

Picture of Bright Grahame Murray
Bright Grahame Murray 19, February 2021

Many businesses are struggling with the VAT regime in place since Brexit, especially when it comes to exporting goods to the EU. We address some of the common misunderstandings.

Exporting goods

Provided you have proof of postage or shipment, goods exported from the UK to the EU are zero-rated. However, as businesses are finding out, problems arise because the VAT implications of importing into the EU must also be factored in.

Most businesses will need to accept responsibility for the EU VAT and therefore export on delivered duty paid terms. This adds significant cost unless you register for VAT in each country exported to so that VAT can be recovered. However, the introduction of the EU’s one stop shop from 1 July 2021 will mean just one EU member state VAT registration will be required for consignments of less than 150 Euros.

Many businesses are setting up an EU base to get round the worst of the problems, which the government has appeared to encourage. The Netherlands, with English spoken by most, is a popular choice, and Dutch logistics and warehousing companies are seeing high demand for their services.

Imported goods

The introduction of postponed import VAT accounting means that, in most cases, import VAT does not need to be paid upfront. Instead import VAT is accounted for as a reverse charge on the VAT return. You or your agent simply need to indicate on the customs declaration that postponed accounting will be used.


VAT on business to business services remains essentially the same, with the place of supply generally where the recipient belongs. There is no longer any need to submit EC sales lists for goods exported or services supplied to the EU.

HMRC guidance on VAT on exports can be found here.

Recommended Articles

- December 16, 2020

Recommended Articles

Recommended Articles

Recommended Articles

Submit a Comment

Trusted by 120+ Members & Partners

Become Partner

Start Growing in the UK with PBLINK

You don't have to do business alone. Master the networking and get the most out of B2B tools with Polish Business Link.

Trusted Referrals

120+ Members & Partners, 3k Business Registered in database growing their business in the UK with PBLINK.

Business Network

PBLINK works with a diverse range of entrepreneurs operating in various sectors, but mostly in the Construction, Trade & IT industries.

B2B Support

At PBLINK we can produce a lead-generation plan within the our network and via resources such as Linkedin

B2B Events

Business Events in the Polish Embassy in London, Congress of Polish Entrepreneurs, Construction events and more.