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How will Brexit impact VAT Managers in companies based within the UK?

Visit our Brexit VAT Portal to stay up to date with the latest VAT changes

Now that Brexit is finally happening, we want you to be ready to face the challenges that come your way. The Brexit transition period is set to end in just over four months time on 31 December this year – and with that, comes many significant changes that you must know about.

And remember that these changes may well result in additional costs for you to bear if you are not fully prepared.

As a UK-based company, the EU 13th VAT directive will apply. In short, this directive gives your business the right to recover VAT incurred in one of the 28 EU Member States.

From 1 January 2021, you will be expected to…

  • File VAT returns on paper, and supply original documents as required
  • Know all expected changes in filing deadlines
  • Plan for delays in getting refunds
  • Understand your fiscal representation requirements and consider reciprocal restrictions


Reciprocity restrictions will also be applicable to non-EU businesses reclaiming VAT. And after 1 Jan 2021, these may apply to your business also. Spain, Italy, and Germany would be among the main refund countries that UK businesses have expenses in, but non-EU businesses may only claim refunds on a limited range of expenses (Spain, Germany) or after appointing fiscal representative (Italy).

Keep in mind that you can continue to use the EU VAT refund system to claim a VAT refund on expenses incurred before 1 January 2021 in EU member states, until 11pm on 31 March 2021.

Change on this scale can be a daunting prospect. Here at Taxback International, for more than 20 years, we have helped thousands of companies simplify their VAT processes.

 To fully understand what VAT life after Brexit will look like, you can depend on our experience and regulatory knowledge to guide you through this challenging time.

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