Be prepared for Brexit: The questions you need to ask

Life sciences companies with operations in the UK or Europe are wondering where to even start when it comes to Brexit-related legal issues.

To give you a jumpstart, our colleagues from different practice groups across multiple countries have prepared a series of questions you should ask to better understand how Brexit will impact your business and to clarify what steps need to be taken. In this edition, we discuss questions related to taxation and customs.

VAT and custom duties:

  • In case of supply chains where goods are being shipped from the UK to other EU Member States and vice versa:
    • What measures will be necessary to cope with new VAT filing, registration and payment requirements?
    • How will you handle the necessary customs filings?
    • What is the volume of goods that are being supplied between the UK and other EU Member States?
    • Can you amend your supply chain to avoid customs duties?
  • In case of supply chains where goods are being exported from the UK to a third country or imported to the UK from a third country:
    • What is the volume of such exports and imports in your supply chain?
    • How much do you currently benefit from the EU's existing trade agreements with third countries when it comes to customs duties?

Direct taxes:

  • For groups with entities in the UK and in other EU Member States :
    • What dividend payments are being made between UK entities and entities located in other EU Member States?
    • Are you making use of the withholding tax exemption for dividends under the EU Parent-Subsidiary Directive?
    • Do you plan any cross-border corporate restructurings in the near future involving UK entities?

Brexit FAQ: Taxation and customs

Direct taxes (continued):

  • For groups with entities or permanent establishments in the UK:
    • What interest and royalties payments do you make from the UK to associated companies or permanent establishments in other EU Member States?
    • What interest and royalties payments do you receive in the UK from associated companies and permanent establishments in other EU Member States?
    • Are you making use of the withholding tax exemption for interest and royalties under the EU Interest and Royalty Directive?
  • Are you domiciled in an EU Member State outside the UK with a company (e.g. a Limited) established under English law?