Brexit Update: UK’s Chaotic Departure from EU Still on Table
Following the European Union (EU) Summit on 21 March, EU heads of state reviewed the UK’s request to extend Brexit’s original date of 29 March 2019 to 30 June 2019. After extensive debate, the EU offered the UK two options:
- An extension of the Brexit date until 22 May, subject to the condition that the Withdrawal Agreement between the EU and the UK government is approved by the UK House of Commons on a third vote to be held later this week; or
- If the Withdrawal Agreement is not approved by the House of Commons this week, an extension of the Brexit date will be granted until 12 April, subject to no conditions.
If the Withdrawal Agreement is not approved for the third time, the UK government will need to reach a consensus on the next steps. Possible decisions include:
- Accept the outcome of a no-deal Brexit on 12 April;
- Exit the EU under alternative arrangements;
- Request the EU for another extension of the Brexit date; or
- Revoke Article 50, ultimately deciding not to leave the EU (however, this seems unlikely given Prime Minister May’s vow to deliver Brexit).
For now, Vertex joins others in monitoring Brexit developments and helping our customers prepare for possible outcomes. Earlier this month, we updated our value added tax (VAT) determination engine with specific place-of-supply logic for post-Brexit UK transactions to allow companies to test UK VAT transactions. Once there is more clarity on Brexit’s date and conditions, our VAT determination engine will be updated with content reflecting the outcome. We will keep you posted on additional changes as they develop.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.
Explore more resources from our industry influencers:
Sign Up For Our Newsletter
Global Tax Solutions: Improve Compliance for Your Business
Reduce risk and get the agility needed to support business growth with a scalable solution for VAT & GST determination.LEARN MORE