From 1 September 2021 we will receive you in all our offices again, but by appointment only.

Brexit and VAT - Overview

The following table highlights, from a Belgian point of view, the differences in treatment, regarding VAT, of the transactions made to and from the UK on the one hand and to and from Northern Ireland on the other hand, in the scenario where the European authorities and the British authorities will have agreed upon the modalities of the Protocol on Ireland and Northern Ireland.  If this isn’t the case, the mentions in column 2 will in principle be considered to apply to the UK as well as to Northern Ireland.
 

Overview of the VAT treatment of transactions from or to the United Kingdom and Northern Ireland (regulation applying as from 1 January 2021)

  • Supplies of goods

    Nature of the transaction United Kingdom (excl. Northern Ireland) Northern Ireland
    Supply Belgium - UK In Belgium: exemption of article 39 VAT Code
    In the UK: importation
    In Belgium: exempted ICS (intra-Community supply) according to article 39bis VAT Code
    In Northern Ireland (NI): ICA (intra-Community acquisition) + communication of the XI VAT number
    Supply UK – Belgium In the UK: exportation
    In Belgium: VAT due upon importation
    In NI: exempted ICS
    In Belgium: taxable ICA
    Triangular transactions BE - UK - MS 3 No simplification possible: the taxable person from the UK must get himself identified for VAT in MS 3 Simplification regime possible. The taxable person from NI can communicate his XI VAT number
    Triangular transactions UK - BE - MS 3 There is an importation in MS 3. Simplification regime possible. The BE taxable person can communicate his BE VAT number
    Belgian VAT is accounted for upon a supply to a taxable person from the UK Refund request according to the 13th Directive Refund request VAT Refund through the portal NI + communication of the XI VAT number
    UK VAT is accounted for upon a supply to a taxable person from BE Refund request to be filed to the competent authorities of the UK Refund request VAT Refund through the BE portal
    Distance sale from Belgium to the UK (private buyer) In Belgium the exemption of article 39 VAT Code applies.
    In the UK it is an importation
    Until 30 June 2021: transaction takes place in BE if under the threshold of 85.000 euro, in NI if the threshold is exceeded
    Distance sale from the UK to Belgium (private buyer) Until 30 June 2021:
    • in the UK: exportation
    • in Belgium: importation by the seller (threshold 22 euro)
    Until 30 June 2021: transaction takes place in NI if under the threshold of 35.000 euro, in BE if the threshold is exceeded
    Sale in Belgium to a private buyer from the UK, transport on behalf of the buyer It depends: exemption of article 39, § 1, 4° (international traffic of travellers) or 39, § 1, 2°, VAT Code Importation in the UK Belgian VAT
    Sale in the UK to a private buyer from Belgium, transport on behalf of the buyer Taxable importation in BE by the Belgian acquirer NI VAT
  • Transfers

    Nature of the transaction United Kingdom (excl. Northern Ireland) Northern Ireland
    COS (Call-off-Stock) from Belgium to UK Transfer of goods to the UK: the Belgian taxable person must by principle declare the goods upon importation in the UK Simplification regime COS possible
    COS (Call-of-Stock) from UK to Belgium Exportation in the UK: the taxable person from the UK is the addressee of the importation and must by principle get himself identified for VAT in Belgium Simplification regime COS possible
  • Importation

    Nature of the transaction United Kingdom (excl. Northern Ireland) Northern Ireland
    Importation in BE from a 3rd country, immediately followed by a supply to the UK The goods will be placed, by principle, under the regime transit T1 Exemption possible upon importation in BE (code 42) + ICS with destination NI – ICA in NI
    Importation in UK from a 3rd country, immediately followed by a supply to BE Importation of the goods in Belgium Exemption possible upon importation in NI (code 42) + ICS with destination BE – ICA in BE
  • Services

    Nature of the transaction United Kingdom (excl. Northern Ireland) Northern Ireland
    B2B service rendered by a Belgian taxable person to a taxable person from the UK In the UK = extra-Community service –
    Box 47 of the periodical VAT return
    In the UK = extra-Community service –
    Box 47 of the periodical VAT return
    B2B service rendered by a taxable person from the UK to a Belgian taxable person In Belgium = extra-Community service
    Reverse charge - boxes 87 – 56 of the periodical VAT return
    In Belgium = extra-Community service
    Reverse charge - boxes 87 – 56 of the periodical VAT return
    Services of telecommunication, radio – and television broadcasting and electronic service B2C by a UK taxable person for a Belgian client MOSS-system possible until 30 June 2021 by means of a registration in one MS (regime not EU). If not, identification in Belgium via the approval of a responsible representative MOSS-system possible until 30 June 2021 by means of a registration in one MS (regime not EU). If not, identification in Belgium via the approval of a responsible representative
    Services of telecommunication, radio – and television broadcasting and electronic service B2C by a Belgian taxable person for a UK client Service takes place in UK. As from 1 January 2021 the MOSS-system is no longer applicable. It is up to the British authorities to establish what the obligations of the Belgian taxable person will be Service takes place in UK. As from 1 January 2021 the MOSS-system is no longer applicable. It is up to the British authorities to establish what the obligations of the Belgian taxable person will be
    Belgian VAT is accounted for upon a transaction to a taxable person from the UK Refund request according to the 13th Directive Refund request according to the 13th Directive
    UK VAT is accounted for upon a transaction to a Belgian taxable person Refund request, to be filed to the competent authorities of the UK Refund request, to be filed to the competent authorities of the UK