BREXIT: What consequences does this have for Microsoft Dynamics users?

After 47 years, the United Kingdom left the European Union on 31 January 2020. The leaving will also have considerable consequences in terms of tax law. Once the European Parliament has given its approval to the brexite deal, a transitional phase will apply until 31 December 2020. During this period, the United Kingdom will continue to be treated as an EU member state and will continue to comply with the regulations of the European Union. Ultimately, at the end of the transition period, tax transactions with the United Kingdom will have to be revalued.

1. Country table (countries/regions)
When setting up the country table, the EU country code, the Intrastat code and the VAT scheme must be removed from the country code for Great Britain.

2. Sales tax ID numbers
When you leave Great Britain, the VAT registration ID of your business partners (mainly customers and vendors) from Great Britain becomes invalid. Therefore, the business posting group and the VAT business posting group must be adjusted for all British business partners. You must also remove the VAT registration ID.

Depending on how the customer or vendor posting group has been set up, it may be necessary to change it as well. However, you must check whether any open items exist at the time of leaving (and therefore when the account is changed over). If this is the case, you must make the transfer postings manually.

3. Services
From the date of withdrawal, the VAT ID of the companies in Great Britain loses its validity. This means that the proof of entrepreneurial status is lost and the companies must provide other proof.

4. Products registration code
The registration marks that have been valid within the EU up to now, such as the CE label, lose their validity.

5. Customs declarations
Depending on whether a trade agreement or similar contracts with Great Britain are concluded, the most varied customs regulations must be observed. In the case of a free trade agreement, for example, the preferential origin of a product must be proven in order to benefit from a reduced rate of duty.

6. Intrastat declarations
The Intrastat declarations for deliveries of goods to and from Great Britain cease to apply with the withdrawal.

7. Incoterms
The Incoterms agreed with your business partners must be checked in good time and renewed if necessary.

8. Deliveries of goods in sales
All deliveries that you make up to and including the time of departure (the start of the transport is decisive here) can be completed and invoiced as before. The time of the later invoicing is not relevant.

All orders already recorded, but for which you make the delivery after the date of departure (here too, the start of the transport is decisive), are no longer regarded as intra-Community deliveries. You must adapt them to the new circumstances. The easiest way to do this (after you have revised the master data) is to transfer the open items to new documents and close the previous documents. This also applies analogously to any existing blanket orders.

9. Products deliveries in purchasing
You can close all deliveries that you have received up to the time of leaving as before and post the purchasing invoice for them. Here too, the products delivery must have been transported by the time of leaving.

All purchase orders that have already been entered, but for which you receive a delivery after the time of leaving, are no longer considered intra-Community deliveries and must also be converted to the new conditions. Again, the easiest way (after you have revised the master data) is to copy the open items to new documents and close or delete the existing documents. Proceed in the same way with existing framework orders.

10. Internal goods movements
Movements of goods within the enterprise (belonging to the same legal unit) are also subject to the rules explained under points 8 and 9.

Please note: The points listed have been compiled with the greatest possible care, but make no guarantee of completeness. They are not complete and cannot replace a consultation tailored to your individual circumstances.