As of 1/1 2021, England is no longer part of the EU. This means that EU VAT rules no longer apply to trade with customers in the UK.
Brexit includes England, Scotland and Wales (Great Britain), while Northern Ireland is still part of the EU.
Northern Ireland must now use country code XI.
This article describes the things you need to be aware of in terms of setup in Uniconta in connection with Brexit.
The setups below are recommendations only. It is recommended that you contact your accountant and/or VAT consultant and inquire about the rules that apply to your particular business.
We also recommend you read more about Brexit on these pages:
https://um.dk/da/Udenrigspolitik/brexit/
Moms
As of January 1, 2021, the UK is to be considered an Abroad/3rd country instead of an EU country for VAT purposes. This means that you need to check the VAT setup on all your UK debtors and creditors. The VAT zone field on the UK debtors must be changed from EU member state to International. If you have filled in the VAT field on your accounts receivable, make sure that you have entered a VAT code for sales in 3rd countries in this field. You can also leave this field empty so that the VAT code on the debtor and/or product groups is used instead. On the debtor and product groups, the VAT code in the Sales VAT (International) field will be used. The same goes for the VAT setup on your creditors. Please note! Below is a separate section regarding the setup changes we recommend you make if your Danish company needs to register for VAT in the UK.EORI number
EORI stands for Economic Operators' Registration and Identification. In other words, EORI is a common EU register of companies that import or export goods to or from the EU. If your Danish company is registered as an exporter, your company will automatically be assigned an EORI number, which you must enter in the EORI field under Company/Company details in Uniconta. If you have English companies as customers, you must also fill in the EORI field for these debtors under Debtor/Debtor, so that you also have their EORI number registered.VAT registered in England
If your company is going to be/has been registered for VAT in the UK due to the new Brexit rules, you will need to make various setup changes in Uniconta. Financial accounts and VAT codes If applicable, you must have created English VAT codes under Finance/Maintenance/VAT. These VAT codes should be easy to recognize and should not refer to the same accounts in the chart of accounts that you use to book the Danish purchase and sales VAT etc. In the financial accounts you create in the chart of accounts for posting the English VAT amounts, it is recommended to mark the System account field with the value Offset VATable exports, because then amounts from this account will not be included in your VAT statement. Invoice number series You also need to create a special invoice number series to be used as invoice numbers on sales invoices for English customers who are invoiced with English VAT. You create this number series under Finance/Maintenance/Number series. Accounts receivable and product groups You must also create a debtor group under Accounts receivable/Maintenance/Debtor groups. The invoice number series created for the English customers must be linked to this debtor group in the Invoice seriesfield . This debtor group must point to the VAT codes and revenue accounts to be used for the English customers. Note that if the Revenue Conversion field is filled in with Item Groups, you should also check the setup of your item groups. You may need to define account and VAT codes under the Inventory button. Debtors Also remember to change the debtor group of the debtors to be charged with English VAT. This is done in the Group field under Debtor/Debtor. Invoice layout customization There are the following invoice requirements due to Brexit. If you need assistance in adjusting your invoice layout, please contact your reseller or our support.- Your CVR/EORI number must appear on the invoice.
- The recipient's GB EORI and GB VAT number must appear on the invoice
- You don't need to charge VAT on the invoice, as duty/VAT is charged to the recipient in the UK via the GB UK EORI/Vat number.
- Invoices must be posted with invoice numbers from a separate invoice number series.
- Invoices must contain information about the weight of the goods.