In January 2019, the Luxembourg VAT authorities published a preparedness notice on the VAT-related
consequences of the United Kingdom
("UK") withdrawal from the European
Union ("EU") as from 29 March 2019, in
case of a "no-deal" Brexit.
In a nutshell, the notice provides that the UK will be
considered by the EU as a third country for the application of the
VAT rules on the supply of goods and services. Most
specifically:
- with regard to the supply of goods
between Luxembourg and the UK, these transactions will be subject
to Luxembourg VAT rules on imports and exports. The Luxembourg VAT
authorities also raise the temporary but limited risk of double
taxation related to ongoing movements and advises taxpayers to move
the timing of the transport of goods in order to avoid this
issue.
