Guidance

VAT IT system changes for businesses outside the UK in a no-deal Brexit

Find out how you can check UK VAT numbers, pay VAT on digital services and claim VAT refunds in a no-deal Brexit.

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The UK will leave the EU on 31 October. This page tells you how to prepare for Brexit. It will be updated if anything changes, including if a deal is agreed.

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Check UK VAT numbers

After Brexit, you will be able to check if a UK VAT number is valid by using the UK’s VAT checking service (this service is not available yet).

You’ll no longer be able to use the EU’s VAT number validation service, to check the validity of a UK VAT number.

How to pay VAT on sales of digital services to UK consumers

You will not be able to use the VAT Mini One Stop Shop (MOSS) to report and pay VAT on sales of digital services to consumers in the UK.

You must register and pay VAT in the UK as soon as you supply any digital services to a UK consumer.

The current €10,000 threshold for cross-border sales of digital services inside the EU will no longer apply.

If your VAT figures are not correct

You’ll need to follow HMRC’s VAT correction process to correct a UK VAT figure submitted in a previous MOSS return. You have up to 4 years from the end of the period relating to that return to do this.

How to claim UK VAT refunds

Claims for VAT on business expenses before Brexit

Claims can be made using the EU VAT refund electronic system, but you should allow enough time for your member state to send the claim to the UK. If a claim is sent through the online system after Brexit, it will not reach the UK.

The deadline to submit a VAT refund claim will stay the same:

  • 30 September 2019 for claims for VAT incurred on expenses in 2018
  • 30 September 2020 for claims for VAT incurred on expenses in 2019 up to the date of Brexit

Claims for VAT on business expenses after Brexit

You’ll no longer be able to use the EU VAT refund electronic system to claim refunds of VAT incurred in the UK.

You must follow the manual processes for businesses outside the UK.

The main differences are:

  • the repayment period runs from 1 July to 30 June instead of 1 January to 31 December
  • the deadline for submitting a claim is the following 31 December (6 months from the end of the claim period)

You’ll also need to provide:

  • a certificate confirming your taxable status
  • all original invoices and receipts to support your claim
Published 18 March 2019