Following the UK leaving the EU VAT regime from 31 Dec 2020, UK vendors have lost the right to use the B2B VAT triangulation simplification when selling goods between EU member states. UK businesses will no longer be able to invoice VAT free using their GB VAT numbers when their supplier and their customer for goods are in different EU member states. On the flip side, EU supplier will lose out too as UK legs to triangulation supplies will incur import VAT following Brexit.
The impact will be the need to replan the contracting supply chain, manage import VAT or consider if extra VAT registration would resolve the problems. Contact Avalara for free guidance on the Triangulation changes, or other Brexit VAT or customs matters. Nothern Ireland goods transactions stay within the Triangulation rules.