As of January 1, 2021, Great Britain is no longer part of the European Union and has its own tax rules and rates. If you supply goods to customers in the United Kingdom, you will obviously have to deal with a changed situation. What will change and what do you need to adjust in Wholesale?

The main change is the VAT rate which is different for supplies to and from countries outside the EU than for supplies to EU member states. Now that Britain is no longer an EU member, a different VAT rate is applied.

Specifically, you need to change the VAT code to Wholesale. For UK creditors, it must become 00000004 instead of 00000003. And for UK debtors, it will become 00000008 instead of 00000007.

How to adjust these scenarios is in the document sent by Kerridge Commercial Systems, the supplier of Wholesale on this subject.

Open orders and credits

Do you have outstanding orders from UK customers? If so, you will apply the new VAT rate to payments as of January 1.

However, if the order has been partially paid, you must continue to apply the old VAT rate. You also apply the original VAT rate to credit notes.

VAT return

Have you left Britain unchecked as an EU member state? And have you adjusted the VAT scenario? Then the VAT return will automatically go right.

Should you nevertheless come across orders with the wrong VAT scenario, the document describes how to change it.

Intrastat declaration

This declaration covers all invoices to and from countries outside the EU. Attention! For 2021 this declaration will be fine, but if you still have to file an Intrastat declaration for 2020, you will have to - especially for this purpose - temporarily turn on the check mark for the United Kingdom as EU member state again. And then quickly uncheck it again, of course!

Download the document with step-by-step instructions:

Download

P.S. Looking for the changes to SAP Business One? This video will tell you more about it: video