Following Brexit, the agreement between the UK and the European Union came into effect on December 24, 2020 Effective January 1, 2021.
From this date UK It is therefore no longer part of the EU Customs and Fiscal Territory (VAT, Excise).
The approval of the British and European Parliament has not been decided, and the European Commission has prepared special guidelines. Tax and Customs Legislation.
Latest “Notice to those concerned“The European Commission REV3 version of December 10, 2020.
EU VAT rules do not apply to the United Kingdom, Especially Directive 2006/112 / EC Council of 28.11.2006 relating to the general provision of Value Added Tax (VAT Directive) Directive 2008/9 / EC Of the Council, 12.02.2008, which establishes detailed rules Value Added Tax Refund, Provided by Directive 2006/112 / EC, Refunds for taxpayers are not established in the member state but in another member state.
Delivery and movement of goods between the European Union and the UK will be subject to VAT Import ed Export. The second will be billed Non-tax transactions, Article 8, paragraph 1, letters a) or b), Presidential Order 633/1972 With Nature of Operation N3.1.
Particular attention should be paid to the export or export of goods from the United Kingdom to the territory of a Member State (and vice versa). Launched before December 31, 2020 But then it ended, Meaning that the goods reached the EU (or UK) border when the conversion was complete.
These activities are for VAT purposes in accordance with Article 51 (1) of the Withdrawal Agreement They are still considered intra-EU activities Sales of taxable B2C items in the destination country (long distance sale of goods) or export / import without origin.
From January 1, 2021, i Assets progress is progressing However, they have to be presented at customs, EU and UK borders. Customs officials may ask importers To express With a shipment or other document that commenced export or shipment before the expiration period.
For these activities The reporting obligations set out in the VAT directive will continue to apply, For example Presentation of Summary Lists (Intra).
If the activity between UK And the European Union It took place on December 31, 2020 The rights and obligations of the taxable person continue to be exercised in accordance with EU VAT law.
To the area In Northern Ireland, Special rules apply e Withdrawal Agreement This is dealt with separately in Article 185, which distinguishes between the supply of goods and the supply of services: Avoid the physical border between Ireland and Northern Ireland, The second, though part of the United Kingdom, EU will continue to be subject to VAT on supplies, intra-community purchases and imports of goods.
For this, the Directive (EU) 2020/1756 20.11.2020 Council amending the Directive 2006/112 / EC in the matter of identification Taxpayers in Northern Ireland From January 1, 2021, it is considered one Community member state.
Therefore, transactions involving the movement of goods between Northern Ireland and its member states will be treated as inter-EU transactions. Will be the supply of goods Inter-Community Supplies, Non-tax transactions, Article 41 DL 331/1993, The Nature of the Transaction N3.2.
From January 1, 2021, EU VAT legislation will make individuals taxable under the Northern Ireland Protocol. VAT identification number with “XI” prefix (Except UK starting at GB).
The VAT directive states that VAT identification is usually based on the prefixes of union identification numbers. ISO code 3166 – Alpha 2, which can identify the designated member state, but for areas that do not have a specific code, Possibility to use “X” codes.
Requirements of Proposal 2020/1756, Has Fully technical in nature, Transposition rules are not required, but models containing databases working with member identification codes and foreign identification codes (VIES, OSS-Ioss, VAT e-FCA) need to be updated. A special prefix “XI” is provided to identify taxpayers in Northern Ireland, Deals with goods for which the Union VAT Act applies.
I People of Northern Irish descent need to mention their “XI” prefix Invoices relating to the delivery of goods made to a member’s taxpayer, especially in front of the VAT number.
Similarly, if the consumer has a taxable person in Northern Ireland Enter your VAT identification number along with the “XI” prefix This is one of the conditions for suppliers to obtain a discount from intra-union supply when purchasing goods from a member state. The country code “GB” as part of the physical address of the headquarters or permanent entity should continue to show value (Associated Software Fax dated 27.01.2021).
Therefore, it is necessary to use specific distinctive codes depending on the area covered by the activity: GB For the UK, the XI for Northern Ireland is, of course, valid for IE Ireland.
Finally, services transactions between Member States and Northern Ireland, Not included in the contract protocol, They are equivalent to transactions between member states, third (non-EU) countries and territories such as the United Kingdom.
The provision of generic services from suppliers in Northern Ireland must be self-billed (TD17 may be used); The Provision of generic services A Northern Ireland customer will be billed a domestic entity Transactions are not subject to VATArticle 7-To have DPR 633/1972, Characterization of Operation N2.1 (Applying stamp duty).