As part of Brexit readiness we are closely monitoring and working with our Local Product Managers in EU to make sure that its a smooth transition for our customers. For upcoming changes and impact on Business ByDesign please keep a track on this blog.
Please note with latest announcement its unlikely that there will be a no deal scenario, In an unlikely event of “no deal” please refer to the bottom of this post
Please familiarize yourself with “Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community” (the so called “deal”) published here:
One major achievement of this Agreement would be a business transition period. Unless otherwise provided in the Agreement, Union law shall be applicable to and in the United Kingdom during the transition period. (Please see Article 126-132 of the Agreement.).
We must distinguish three phases:
- United Kingdom as EU member (until January 31st, 2020)
- Transition period (currently planned until December 31st, 2020)
During the transition period, although officially the UK will have left the EU, they will still follow the EU rules and regulations. Whilst in the transition period the trade negotiations will take place and we will continue to monitor announcements and assess what changes will need to be done when the UK exits the transition period.
Now as we prepare for 1st Jan 2021 we expect impact on customers in the following ways
Northern Ireland Protocol (ref https://www.gov.uk/government/publications/moving-excise-goods-as-freight-under-the-northern-ireland-protocol-from-1-january-2021)
If you have customer and suppliers in GB and in particular Northern Ireland regions you will have to check and maintain correct postal codes. System will be using postal codes to determine if good shipment is happening to Northern Island Regions for Tax determinations.
Tax Determination and Calculation
If order/invoice/transaction is from or to a customer/supplier who has address with country GB, system will further check postal codes to determine if it should be treated as EU or Export/Import Transaction.
UK Brexit Postponed Accounting VAT return
We will ship 4 new tax codes for scenarios of exempt , zero and reverse charge functionalities for 5% and 20% VAT rate
and reporting will be based as follows
Box 1 – Include the VAT due in this period on imports accounted for through postponed VAT accounting;
Box 4 – Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting;
Box 7 – Include the total value of all imports of goods included on your online monthly statement, excluding any VAT
Few countries have invoice number rules for transactions within EU for example Italy. If such a rule is maintained then system will not allow an invoice having both material and service because of Northern Ireland Protocol impact.
A dedicated blog for Intrastat impact can be found at
We will keep updating this blog as and when more clarity comes from EU and UK.
” No deal ” scenario
Please note with the latest announcements
The UK has been granted an extra two weeks to come up with a Brexit solution after talks with EU leaders.
United Kingdom (GB) triggered Article 50 of the Treaty of the European Union on the 29th March 2017. As set out under that treaty, the United Kingdom had two years to negotiate a Withdrawal Agreement and framework for a future relationship with the EU before the point of the United Kingdom’s exit from the EU at 11pm GMT on 31st Oct 2019.
Steps until now:
- The UK’s departure date had originally been set for 29 March.
- If Mrs May can get her withdrawal deal through Parliament next week, that date will be pushed back to 22 May to give time to pass the necessary legislation.
- If the prime minister can’t get the deal through, the UK will have to propose a way forward by 31st Oct for EU leaders to consider.”
The new dates for automatic tax calculations have been pushed to 31st Oct for “no deal scenario“.
If the Withdrawal Agreement is ratified, the deadline for agreeing the terms of the United Kingdom’s future relationship with the EU will move to 31st December 2020.
A no deal scenario, also called “Hard Brexit”, is one where the United Kingdom leaves the EU and becomes a third country at 11pm GMT on 31st Oct 2019 without a Withdrawal Agreement and framework for a future relationship in place between the United Kingdom and the EU.
This blog highlights impact and steps customer needs to do incase we have a hard exit of United Kingdom (GB) from EU.
Customers will see an activity in fine tuning “Countries” to influence EU Community setting for United Kingdom (GB) with country code GB. When customers want to take the decision for United Kingdom (GB) Hard exit please un select this option of EU community.
Based on this configuration following processes in the system will start evaluating UK as a non EU country.
In case of hard exit, system will automatically start evaluating GB as a non EU country and all tax rules , tax number determination and calculations will take into effect.Please also note EC sales list will stop picking United Kingdom (GB) related invoices from the date of hard exit.
Please note this in for preparation in case there is a hard Brexit. We are monitoring the situation closely and due to changes above mentioned steps can also change.
All updates can be found at