In the referendum held on 23 June 2016, the United Kingdom voted
in favour of exiting the European Union. Although the exit will not
come into effect for another two years, consideration should be
given to the tax implications that may arise, especially with
regard to customs, excise and value added taxes.
Transactions between the United Kingdom (UK) and the countries
of the European Union (EU) are currently considered to be
intra-community transactions, with an obligation to pay VAT
(through a reverse charge mechanism) on assets sent and received.
This allows for the free movement of goods, and the situation is
similar for the provision of services.
After Brexit, the sale and purchase of assets between Italy (or
other EU member countries) and the UK will no longer be considered
intra-community transactions. Instead, assets shipped from Italy to
the UK will be classed as export supplies, while incoming goods
from the UK will be classed as imports.
