NewsCase StudiesEvents

In a Post Brexit world…

Also in the news...

Trade with the UK as a business based in the EU

If you run an EU-based business, check what your business needs to know to continue trading with the UK.

Safety and security requirements on imports and exports

Find out about new safety and security declarations that will apply from 1 October 2021 on goods leaving Great Britain (England, Scotland and Wales).

How to open a company in the USA while maintaining residence in Italy

It is one of the best ways for the Italian citizen to manage their business. This corporate vehicle allows access to multiple advantages of an advanced jurisdiction such as the US and also manages to maintain a low tax rate with very manageable levels of accounting and bureaucracy.

UK-ASEAN Joint declaration

Joint Ministerial Declaration on Future Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the United Kingdom of Great Britain and Northern Ireland (UK).


These are exciting times for Dubai and the UAE. With the entire business world’s attention soon to turn to the Emirates with the delayed Expo 2020 kicking off in October (and continuing all the way through to the end of March next year) it’s never been a better time to be a UAE business owner

In a Post Brexit world…

Back to News

What will happen should the United Kingdom leave the EU without a deal for those that are currently registered for VAT in Europe as distance sellers? There are several potential hypotheses to this. They, are, for now only hypotheses but serve to give an indication of how you may prepare yourself for a “No deal” Brexit.

Let’s take an Amazon trader as an example. The trader is registered on the FBA (Fulfilment by Amazon) platform in six countries (France, Italy, Germany, Spain, Poland and Czech Republic). Currently, the trader has a UK Ltd company and is registered for VAT in the UK. This enables the trader to register the UK Ltd company for VAT around Europe. Third countries such as USA can register for VAT directly in a few countries in Europe but not all have agreements in place.

Post Brexit – if we leave without a deal – registering the UK company directly for VAT in the European Union may not be permissible as the UK could be construed as a third country (similar to the USA) and therefore the following may be required.

Option one would be to set up a company within the European Union and to register that company for VAT – the EU based company could then be registered for VAT in the additional countries that form part of the FBA platform. This leaves the trader in control of paying and submitting their VAT returns, EC Sales and Intrastat (if above threshold in country). Setting up a company in France, Italy, Germany, Spain, Poland or Czech Republic can be done but each has its differing requirements and processes including share capital and director requirements as well as timescales.

Alternatively, option two would be to hire the services of a fiscal representative that is based in the country in which the stock is held which will allow the trader to submit and pay the VAT returns locally. The issue with this option lies in the “control” element. The fiscal representative would be acting on behalf of the trader and paying on behalf of the trader. From a risk perspective, the fiscal representative may take VAT payments “on account” to ensure that these returns are paid for and that they are not left responsible for none-payment which may hinder cashflow for the trader. The trader has no control over the return and payment process and leaves the fiscal representative to do this on their behalf.

This is a choice that may need to be made sooner rather than later if we leave the EU on March 29th 2019.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.