Brexit: BMF information on the tax consequences of a "no-deal Brexit"

It is uncertain how the United Kingdom's exit plan will actually proceed after the British Parliament rejected the "exit agreement" in mid-January 2019. In general, the following are likely: Three possible scenarios.

• Regulated exit (deal) - planned exit by the end of March 2019 and a transition phase as a "normal" EU member state until the end of 2020,
• Extension of the negotiation phase and Withdrawal of the request for withdrawal (based on the case law of the European Court of Justice),
• Unregulated Brexit (no deal, hard Brexit).

In case of a Unregulated Brexit Will the United Kingdom be leaving without a transition period as planned as of the end of March 2019 to leave the EU and then become immediately effective as Third country to treat.

Since a hard Brexit would lead to far-reaching consequences tax and customs legal consequences for Austrian and British companies, it has Federal Ministry of Finance In mid-January 2019, on its website, it published extensive information on income taxes, sales taxes (and customs duties), as well as their impact on private individuals (https://www.bmf.gv.at/top-themen/brexit.html). The following are the essential points.

Tax consequences

The merger directive, which Parent-subsidiary directive or even the interest and license fee directive after Brexit no longer possible; the related benefits for companies are eliminated. However, this is intended to New DBA between Austria and Great Britain compensating one Source tax exemption for dividends with at least 10% participation and no withholding tax on license fees anticipate.

I'm Operational area What if Brexit leads to the Relocation tax to Immediate taxation instead of distributing the tax over several installments. Excluded However, according to BMF information, the following companies are already before dem Brexit have moved to the United Kingdom and the Non-determination or later the Installment payment the tax applied for The Brexit will not lead to immediate taxation or the immediate payment of open installments.

If Private individuals after Brexit move to the United Kingdom, That's how it is Value growth of economic goods to which the Tax law of Austria due to the withdrawal limited will be, in the sense of a "Exit tax" to be taxed immediately (Deferral or installment payment is not possible). Comparable to the business sector, the BMF Info Of course, for before Brexit already retired Individuals who at that time applied to have the tax not imposed now face Brexit No immediate taxation This will not occur (but at the earliest when the relevant economic asset is actually sold). Likewise, Brexit will not lead to the immediate payment of open installments if a payment of the tax had been requested – the BMF Info here contradicts a (still) contrary statement in the Income Tax Guidelines.

After all, the same applies to Benefits for children such as Family Bonus Plus, Child Support Payment Amount, Child Support Payment Amount for Multiple Children, and Single Parent Support Payment Amount after dem Unregulated Brexit Not more.

Tax consequences

As a result of the unregulated Brexit, the United Kingdom immediately to a third country (in place of the community area). Provided that all requirements are met, they will be (Truly tax-free) Export deliveries in place of (really tax-free) intra-community deliveries. In the Deliveries from the United Kingdom if the acquisition takes place instead of the intra-community acquisition, it is basically taxation of import subject and to Change of delivery location.

While Triangular deals after the unregulated Brexit only more limited are possible, cancelled the delivery of Summary reports In full. The performance location regulations are changing in many areas, such as in B2C catalog services. Moreover, after Brexit, it may be necessary for companies from the United Kingdom to register in another country. Fiscal representatives in Austria To order.

Customs law

The starting point for a hard Brexit is that all permits issued in the United Kingdom are revoked. Authorizations for special customs procedures invalid and may have to be applied for again. Since trade with a third country is then being conducted, economic operators may have to register with the customs authorities within the EU (granting an EORI number etc.). If there is a permit for the "approved consignor or recipient" in the shipping process (also possible through a freight forwarder), the Speeded up customs procedures and be moved to the specific destination of the shipment of goods in question.

I'm private travel the apply Free quantities and limits as compared to all other third countries. Within the framework of Internet shopping and retail For the time being, shipments from the United Kingdom with a value of up to €22 remain duty-free. For higher values, sales tax and, from €150, customs duties must also be paid.

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