At this time when I sell a product a consumer in the EU I charge VAT on the product as I would if I sold it to a consumer in the UK. For example: £25 + £5 VAT = £30
However the below statement I have copied from a guide about a no deal brexit states that I would then treat all consumer transactions to the EU the same way I currently do for sales to Non-EU countries, as I can charge the £25 or whatever sum the sale is for and not charge VAT, and thus do not pay VAT to the government of those sales. Have I interpreted this correctly?
“If the UK leaves the EU without an agreement, distance selling arrangements will no longer apply to UK businesses and UK businesses will be able to zero rate sales of goods to EU consumers.”
I am not in a position to comment on this as I am not a qualified accountant. The best advice I can offer is to speak to your accountant about it.
With regards to the way VAT is going to work, I don’t suppose we will know for sure until it has/hasn’t happened.
Sorry I couldn’t be more help
The quote I posted is from the HMRC website on their page about a no deal brexit. I just need clarification of how VAT would work as by the time it comes it is too late. We will be still selling items in to Europe the day before no deal brexit and the day after and going forward so would need to know for sure so we are ready to account for those sales as they come in in real time.
This forum is primarily for support with Quickfile itself, not necessarily the accounting side of it. You would be better off speaking to your accountant about this. I think we would all like to know how Brexit works!