The BFFF recently attended a webinar presented by RM Boulanger in partnership with Unsworth, regarding new VAT rules for Exporting into the EU.
If you are affected by the new rules for exporting to the EU that have come into effect on the 1st January then we would highly recommend you take the time to review the webinar slides here, which RM Boulanger have kindly agreed we can share with you.
The webinar recording can also be found here:
In a nutshell, the new rules mean that:
- If you are exporting goods to the EU to sell to Business-to-Business clients in France you MUST be registered for VAT in France; have a French VAT number and file VAT returns to the French authorities monthly, even if you make no transactions in a month, a return still needs to be filed. This is the standard methodology and known as Regime 40
- If you are selling your goods to Business-to-Business clients in other EU countries and NOT France, then there is the possibility of using RM Boulanger’s Global VAT number. This is referred to as Regime 42 and requires certain conditions to be met which RM Boulanger will be happy to talk to you about.
- Both of these regimes make UK exporters able to sell on a DDP basis in the EU and as a result EU clients buy from you as if your company was based in the EU – just like Brexit did not happen.
- It’s worth noting that NO corporate tax is paid in the EU, as a VAT registration number is different from being established in the EU.
- The timescale to get a French VAT number is 3-4 months at the moment but it’s only 3-4 days to work with RM Boulanger’s Global VAT number.
- Note: There are slightly different rules and therefore different solutions for companies that have Business-to-Consumer operations. RM Boulanger would also be able to advise on this. Their contact details can be found on the webinar slides.