Brexit - No Deal: the processing of the supply of goods between the EU and the United Kingdom

As from the date of the withdrawal, the rules of the European Union (EU) on the cross-border supply and movement of goods between EU Member States no longer apply to the relations between EU Member States and the United Kingdom (e.g. no intra-Community supplies and acquisitions, not distance-selling schemes for goods to or from the United Kingdom).

Instead, from the date of the withdrawal, the supply and the movement of goods between Luxembourg and the United Kingdom become subject to the VAT rules on imports and exports.

With regard to ongoing movements between the United Kingdom and Luxembourg, the risk of double taxation is only temporary. The Registration Duties, Estates and VAT Authority (AED) informs that it will be enough to simply move the transport date in order to avoid double taxation. Moreover, the AED stresses that double taxation will not have a serious consequence if and provided that the VAT due is immediately and fully deductible, and that in any case, the double taxation would be in opposition to the principle of the neutrality of VAT.

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