Now that the transition period for Great Britain leaving the EU has come to an end, the way that you need to report VAT on trade with EU countries has changed.
You can read more about the changes and how they will affect your business on the HMRC or Revenue websites.
We have introduced some changes to the tax code settings to help you configure your codes following Brexit:
- Renamed the EU Trade Flag to EU Trade and Reverse Charge.
- GB Clients should no longer use any tax codes with this setting for transactions after 31/12/2020.
- EU Clients should continue to use this flag for intra-EU transactions
- Added a new Reverse Charge / PVA flag. New Tax Codes should be set up for:
- GB clients should create new tax codes to replace any existing codes with the EU Trade and Reverse Charge
- EU Clients should create new tax codes for any trade with GB or countries outside the EU where Reverse charges or Postponed VAT Accounting are needed
See the below articles for specific action that you need to take now in order to prepare for your next VAT return and for more details on how the new settings will affect you.
