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Transition – Services

Status Changes

When the UK leaves the EU then the UK stops being part of the single market, and so UK and EU become different territories.

EU rules state that individuals and businesses should not be treated differently, across intra EU borders. But now UK is not part of UK so this rule no longer applies.

VAT rules on the supply of services across EU, were taken into UK law so apply as before but will need to be reassessed with the new perspective of UK being outside of EU

Selling Services to the EU

After Transition, you will be crossing borders when supplying services to the EU from the UK, so the supply will usually be an overseas sale for the supplier, and an overseas purchase for the customer.

But there may also be new regulations to consider, as you will no longer be considered local e.g. VAT registration thresholds, withholding tax, transaction charges.

Make sure you have checked national rules before you agree to do work.

MOSS after Transition

Mini One Stop Shop (MOSS) is an EU reporting system, to report VAT on sale of digital services across the EU.  The UK will no longer be a member, so if you wish to continue to use MOSS after transition then you will have to register for VAT MOSS in an EU member state.

Alternatively, you can register for VAT in each EU state in which you sell digital services to consumers.


As the UK splits from the EU then so new VISA’s and work requirements will be introduced.

It is your responsibility to check that your staff are still allowed to work in the UK, or wherever you get them to work.

Extra employment taxes may also become due.

Business Licences & Agreements

Many agreements are territory based, so what territory do they cover now – did is say EU or Europe?

Where is your business based? Has this changed?  What rules or reporting now apply?

Are you, your business and your staff licenced to operate in this territory?

What qualifications do you and you staff hold?  Are they now valid where they/you are?

Do you need to register for VAT in the EU after Transition?

What about agreements with customers & suppliers? – what law is applicable?


Travelling on Business

After Transition, you will be crossing borders when traveling to the EU so will need a valid passport, insurance etc.

If you are visiting the EU on business after Transition, then there may be extra restrictions associated with your reasons for travel.  Specifically, you may be treated as working in that country, when providing services, paid or as a volunteer, on tour, or even just visiting for meetings or conferences.

Make sure that you as employer have checked in advance before you or your staff travel.

For more information see our other blogs in this series

  1. What is Brexit Transition
  2. Identity
  3. Licences & Certification
  4. Staff
  5. Exports
  6. Imports
  7. Actions & Costs

Or Visit HMRC

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