"CIRC. 52/2016-the UK remains in Europe at least for now "

Posted by on Jul 12, 2016

Until further notice the invoices received or issued in respect of the United Kingdom will follow the VAT treatment and compensation until now applied.

The output of the United Kingdom from Europe must follow several steps:

  • the United Kingdom shall notify the Council of its decision to leave the EU;
  • the European Union will have to negotiate and conclude an agreement with the United Kingdom to define the output, in fact, the agreement must be adopted by a qualified majority of the Member States;
  • the final deal must be approved by the European Parliament through a vote of simple majority.

It is expected that this procedure will last for the next two years to last June 23, 2016, only then the United Kingdom will be officially out of Europe so that tax will have to be treated as a non-EU country.

Requirements still in force

In consideration, so that for now nothing has changed concerning operations carried out by domestic players to and from the Member countries of the United Kingdom, we go to summarize briefly the requirements to be performed in case of sale or purchase of goods and services to and from that country.

Intra-Community supply of goods and services


The Bill concerning intra-EU supplies of goods should be delivered within the 15 day of the month following the date of the transaction, indicating that it is non-taxable operation under article 41, D.L. 331/1993. Such invoices shall be recorded separately in the register referred to in article 23, P.r.decree 633/1972, according to the order of numbering and within the period of issue, with reference to the month of the transaction.

For the services supplied to a taxable person in another Eu tax payer the invoice will be issued without VAT ex Article 7 ter, one who will receive the invoice shall apply the mechanism of "reverse charge".

Intra-Community acquisition of goods and services

For arrivals and for the supply of services, relevant geographically in Italy, numbering should be integration and of the invoice, indicating the euro equivalent of the tax base if expressed in other currency and the amount of VAT at the rate in force. These invoices are recorded separately in the order of numbering:

  • in the register of invoices issued referred to in article 23, P.r.decree 633/1972, 15 business day of the month following the month of receipt, but with reference to the previous month;
  • in the register of purchases provided for in article 25, P.r.decree 633/1972, within the time limits set by article 19, P.r.decree 633/1972, namely before the deadline of the annual declaration for the second year.

Remain also valid obligations of membership in the Vies and Intrastat forms submission and build.

Possible consequences of Brexit

Europe and the United Kingdom on the other can establish customs duties on trade which will, of course, rising prices of goods sold/bought.

Will be due import VAT to a greater extent because the duties will contribute to increasing the taxable amount. Moreover, the provision of the value added tax will no longer be able to take place with the reverse charge mechanism, applicable only to intra-Community, but must be delivered to customs.

You can no longer get a VAT refund provided for Eu purchases, the ability for businesses who purchase in the United Kingdom to get tax refund will be subject to the conclusion of appropriate bilateral agreements.

Also the British company, now out of the Union, shall, in the case of transactions carried out in our country have permanent establishment or act through a tax representative and can no longer adopt the discipline of direct identification. Clearly the same will apply for European companies operating in the United Kingdom.