Brexit and its VAT implications

10. February 2020 | Reading Time: 1 Min

After the British House of Lords and the British House of Commons approved a Withdrawal Agreement – Brexit last week, the European Parliament did the same on 29th January 2020. Therefore, on 31st January 2020, the United Kingdom will finally leave the European Union.

The so-called hard Brexit has existed for a long time, and it has contributed a great deal of uncertainty among companies. This is also a consequence of the repeated delay of leaving the EU in the past.

The Withdrawal Agreement (the United Kingdom’s exit agreement from the European Union and the European Atomic Energy Community) prevented the expected confusion.

The agreement provides a transitional phase until 31st December 2020 in which Union law will remain applicable despite Brexit. It is possible that the transitional phase will be extended at a later date, so it will be necessary to introduce regulations for the subsequent period.