Now the UK Converative party has gained a substantial majority it is almost certain the UK will ratify the Withdrawal Agreement and leave the EU on Jan 31st 2020. As a result an update of the EDD VAT plugin will made available during January to accommodate any necessary changes. Until there is confirmation of the need to make changes, no date for an update can be provided. Any information about an update will be provided on this page.
The information available from the UK government at the moment indicates that little, if anything, needs to change. At the moment, the effect of the UK leaving the EU does not appear to affect how VAT is collected. Instead, the changes you will need to make are in where you send any VAT you collect.
According to the UK tax authority (HMRC) the UK will maintain the same or parallel VAT system though outside the EU VAT system. This means UK vendors selling to buyers in EU member states will need collect VAT as it is collected today but send collected VAT payments, as what is called under the EU VAT directive a 'non-union' vendor, to a tax authority of an EU member state.
Similarly, vendors in the 27 EU member states will continue to collect VAT from sales to UK buyers but send collected VAT from UK buyers to the UK tax authority HMRC. That is, just as UK vendors will need to register with a tax authority of an EU member state, EU vendors will need to register with the UK tax authority. So the change required appears to be procedural not technical.
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