UK and EU businesses need to rise to the challenge that Brexit has posed by reviewing their supply chains and VAT records to trade with EU Member States.
The transition period ended on 1 January 2021 and trade between the UK and EU is now governed by the Free Trade Agreement announced on Christmas Eve 2020.
While many businesses have prepared for Brexit’s impact on customs, many haven’t formulated a strategy to ensure VAT compliance. This is key to the success of any Brexit plan-of-action for the protection of supply chains, allowing companies to continue to trade confidently across Europe.
Although an FTA has been agreed, many problems remain unresolved. As such, businesses must make sure they:
Businesses on both sides of the channel have much to do to prepare. We know the uncertainty Brexit generates is difficult to manage, so businesses need to be ready.
In the midst of this confusion, we can deliver clarity about the Brexit impact on VAT.
Sovos has extensive experience in preparing its customers for the implications of Brexit.