Brexit and the implementation period ― cross-border supplies of services

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Brexit and the implementation period ― cross-border supplies of services
  • Will the place of supply rules for services change after the implementation period ends?
  • What will the impact be on businesses using the MOSS?
  • What will be the impact for TOMS services at the end of the implementation period?
  • What will be the impact on ‘specified supplies’ of financial services?
  • What will be the impact on the financial services exemption?

This guidance note considers a number of issues that may be relevant to businesses involved in cross-border supplies of services between the UK and the EU in connection with Brexit and the implementation period.

For an overview of the impact of Brexit on VAT and customs more broadly, see the Brexit and the implementation period ― overview guidance note.

Much uncertainty still remains for VAT and customs as to how the Withdrawal Agreement will be implemented (especially in relation to Ireland and Northern Ireland) but this guidance note seeks to provide an overview of some of the key points that businesses need to be aware of.

House of Commons Briefing Paper (October 2019) 

For further in depth commentary on the law, see De Voil Indirect Tax Service V1.301.

Will the place of supply rules for services change after the implementation period ends?

Depending on the terms of any future trading agreement between the UK and the EU, it’s not expected that the UK’s place of supply rules will change fundamentally after the end of the implementation period. However, there may be some consequential changes to the rules / the practical application of the rules (particularly where services are not covered by the general place of supply rule, see the

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