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Readers’ forum: Brexit VAT challenge

23 February 2021
Issue: 4781 / Categories: Forum & Feedback
Claiming VAT from German tax authorities post-Brexit?

Brexit VAT challenge

My business sells mechanical equipment and all the goods we buy are imported from a manufacturer in Germany. Since 1 January 2021 and the end of the EU transitional deal we have had no problem with the new import rules for getting goods into the UK electing for postponed VAT accounting and making customs declarations etc.

However one of our customers is a business in Sweden registered for VAT in that country and goods are shipped directly from Germany to Sweden rather than coming into and out of the UK. The German manufacturer has never charged us VAT on these goods but an invoice just received has added 19% German VAT. The manufacturer has said that this charge is necessary because the UK is no longer in the EU. Is this correct? If so can I reclaim this...

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