United Kingdom: Brexit

The HMRC has recently updated the VAT Notice 700/1 to provide temporary rules, which allow some EU Businesses to apply for a UK VAT registration in advance of a no-deal Brexit.

Non-UK businesses and VAT registration due to a no-deal Brexit

Non-UK businesses in the EU who are currently not required to VAT register in the UK owing to cross-border simplifications, such as call-off stock arrangements and the zero-rating of intra-community acquisitions of goods and accounting, may need to register for VAT if the UK leaves the EU without a deal as these simplifications will no longer apply.

Businesses that are not currently eligible to VAT register, yet need to be registered from the day the UK leaves the EU without a deal, can now benefit from temporary arrangements for advanced notification of VAT registration. VAT registrations will go live only if the UK leaves the EU without a deal.

HMRC allows for EU business affected to apply for a UK VAT registration

HMRC have amended their guidance at paragraph 4.7 of VAT Notice 700/1 to allow EU businesses affected to apply for a UK VAT registration in advance of a no-deal Brexit. Once accepted, the EU business will receive notification that their VAT registration will go live go if the UK leaves the EU without a deal.