Contractors’ Questions: Does the Brexit deal affect providing services from the UK to an EU firm?
More pressing for me ahead of a new contract, what if I use a UK limited company to provide IT services to an EU-based client, but I remain based in the UK and work remotely, with only occasional visits to the client?
Expert’s Answer: Let’s tackle your first question first.
Despite a Brexit agreement now being signed off by both the UK and the EU, very little practical information can be added to the Contractor UK piece you have linked to.
Since the deal, we have received many questions on how the VAT rules will change when a UK company like yours, invoices an EU company for services post-December 31st 2020.
What changes when buying things from Europe? Consumer rights are unaffected if buying things from companies based in the UK. People may have to deal with the court system in the country you bought from to get any compensation. According to the consumer organisation Which? even though many of the rights of the consumer are based on EU directives, most have been incorporated into UK law. According to the UK government people may be charged more for using credit or debit cards to pay for things in euros when you buy from companies in the EU, Iceland, Liechtenstein or Norway. Payments may also take longer.