Brexit: customs and indirect taxes if Great Britain turns into a third country
The two-year deadline that started on the date Great Britain announced its intention to exit the EU will expire on 29 March 2019. If Britain and the EU do not agree on a specific transitory period by then, any and all primary and secondary EU laws will cease to be effective in Britain on 30 March 2019, turning Britain into a third country for the EU and its member states.
- importation and exportation of goods subject to customs supervision; regular customs formalities including customs declarations; customs authorities’ potential requests for customs debt security deposits
- regular customs nomenclature including the application of appropriate customs rates
- Authorised Economic Operator permits and other customs simplification permits issued by the British customs authorities not valid in the EU customs territory
- goods originating in the United Kingdom that are incorporated in goods exported from the EU to third countries will no longer qualify as "EU content" for the purpose of the EU's Common Commercial Policy.
- Goods acquired by an EU member state from the United Kingdom or goods shipped from an EU member state to the United Kingdom will be regarded as import and export of goods will all relevant implications.
- Persons liable to tax using the mini-one-stop-shop regime will have to register for MOSS in one of the EU member states.
- Persons liable to tax established in the United Kingdom and purchasing goods or services from EU member states will no longer be allowed to claim a refund of input VAT electronically. But the member states will be allowed to refund the paid tax if Great Britain has entered into an agreement on reciprocity.
- EU member states on whose territory entities established in the United Kingdom carry out taxable transactions will be allowed to request the establishment of a tax representative who will be liable for due tax.
- Suppliers from member states delivering goods liable to excise duty to the United Kingdom will no longer be allowed to use the Excise Movement and Control System (EMCS) in respect of supplies under the conditional exemption from excise duty regime.