The United Kingdom is no longer part of the Single Market and Customs Union, which means the end of the free movement of people, goods, services and capital, leading to important changes affecting citizens and businesses, among others.

Companies trading goods to or from United Kingdom will now carry out operations subject  to customs procedures and formalities.

-  Transfers of goods between Portugal and the United Kingdom -

From the moment United Kingdom leaves European Union, there will no longer be intra-community transactions and distance sales from the national territory to United Kingdom and vice-versa. These transfers and the movement of goods between Portugal and the United Kingdom are subject to the rules applicable to imports and exports.

Thus, the import and export of goods and merchandise is now subject to compliance with the formalities provided for in the customs legislation:

  • submission of customs import and export declarations and, upon importation, the obligation to pay import duties and other charges.

Exception: Northern Ireland, this area is treated as part of European Union for transactions involving goods. However, with regard to the provision of services, Northern Ireland is considered a third country.

- Supply of services between Portugal and the United Kingdom -

In the case of supply of services between taxable persons, the place is usually the country where the acquirer is established. This means that if the acquirer is resident in Portugal, services supplied by a taxable person resident in United Kingdom will be taxed in Portugal. This also applies the other way around, i.e., the services will not be localised at the national level if the acquirer is a taxable person resident in United Kingdom.

For the purposes of VAT, the UK's withdrawal from European Union has not changed the localisation rules applicable to the supply of services, i.e., invoices must be issued with the reference "VAT reverse charge".

Tax Representative: It has been established that citizens and legal entities registered in the AT database and having their address in the United Kingdom must appoint a tax representative.

Useful links: