Brexit and VAT

[Clip]

Friend of mine told me that in case of Brexit, UK won't be consider a EU VAT country so if I create an UK LTD I could send invoices to the rest of EU without VAT

Can anyone confirm this?

Thanks

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Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams

 

[Reboot]

That's the current situation, if you send an invoice from an EU country to⁤ another EU country the VAT rate applied is 0%.

 

[Sols]

We don't know what will happen after Brexit until it's decided how Brexit will be‌ done.

Right now, as @Reboot says, you have VAT reverse charge for intra-community invoices if‍ both parties are VAT registered.

If UK becomes what EU calls a third country, it⁠ would be the same situation as any non-EU company, meaning wouldn't need to charge VAT⁤ when selling to UK (unless new UK law is implemented) but you should register for⁣ VAT in the EU member states you sell to (although most non-EU companies don't, yet,⁢ due to lax enforcement).

There is also a lot of nuance to consider. VAT is︀ a huge mess and every attempt to simplify it makes it worse.

 

[Reboot]

Correct, if you invoice from an EU country to a non-EU country the︁ VAT rate is also 0%, just the accounting is different.

 

[Martin Everson]

Damn people are quick to find opportunity....lol.

Never mind VAT I am interested in UK's‌ plan to start establishing Free Trade Zones as Boris said he wants to do after‍ Brexit.

My prediction is FTZ's in UK will be a way for non-doms in UK⁠ to bring their money into UK tax free and invest it in FTZ's and avoid⁤ tax as technically FTZ investment won't be considered to have entered the UK and hence⁣ no remittance actually occurs - the rich are cunning sponsors of brexit ca#"!.

https://www.britishports.org.uk/system/files/documents/crowe_-_free_trade_zones.pdf

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FTZs provide an opportunity for the UK to continue to attract foreign investment focussed on⁢ the wider European market with the associated employment that this attracts. To attract this investment︀ the UK would have to offer incentives that at least compensate for the trade barriers︁ imposed by the EU. Given the need to maintain core taxation receipts these incentives in︂ the form of reduced corporation tax should be offered in clearly defined geographic areas preferably︃ near a port or airport. Imports of goods to the UK market from FTZs should︄ be subject to duties to prevent unfair competition in local markets
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[Clip]

Thanks, that's what I was looking for