Brexit - transitional period

Rules for trading with Great Britain – effective until 31 January 2021

20 January 2020 14:08

Great Britain has decided to leave the EU on 31 January 2020.

There will be a transitional period – from 1 February 2020 until 31 December 2020 - where the rules for trading with Great Britain will remain unchanged. The transitional period may be prolonged by a year or two, but as a maximum until 31 December 2022.

For purchases made in 2019, VAT refund can as usual be claimed digitally from Great Britain, via TastSelv Erhverv, until deadline 30 September 2020. 
However, the Danish Tax Agency recommends to claim VAT refund before Brexit; 31 January 2020, if possible, as uncertainty about liability and obligations in connection with the transitional period may arise.

During the transitional period, Great Britain will neither be represented in the EU institutions nor will they participate in EU’s decision-making process as they have left the EU. This will not result in any VAT-related changes for companies or systems because Great Britain will remain part of the customs union and the single European market. This means that Great Britain shall neither be regarded as a third country nor shall they comply with the VAT rules for third countries.

As from 1 January 2021, companies shall, when trading with Great Britain, follow the general rules for third countries (countries outside EU), unless an agreement about an extension of the transitional period has been made before that time.

When the transitional period ends, we recommend not to claim VAT refund from Great Britain until Great Britain has informed which process to be applied. The process will be manual like other third countries.

The Danish Tax Agency recommends that you keep yourself informed on skat.dk/brexit. We will also keep you updated on this website.

20 January 2020 14:08

For further information

Contact

Claus Bo Larsen

Claus Bo Larsen

Manager

Customs Clearance

cbla@bws.net

+45 7913 4212