The Consequences Of Brexit For Austrian VAT

After several extensions and long negotiations, the United Kingdom is now set to leave the European Union on 31 January 2020, after which a transitional period will commence until 31 December 2020. Trade between the EU and the UK will be impacted severely, most notably due to changes to harmonised indirect taxes, such as VAT. When EU law ceases to apply, which is currently projected to be after the transitional period, the UK will be treated as a third country instead of a Member State for VAT purposes. This article will provide a legal analysis of the consequences for VAT law.

VAT changes with regard to the supply of services

Business-to-business (B2B) transactions

Currently, reverse charge provisions are provided for to prevent third-country businesses from having to register for VAT purposes in every Member State where supplies of services are made. After Brexit, the system for services supplied by a business in the UK to an Austrian business remains the same,