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Home Brexit Finance (Customs & VAT)

Finance (Customs & VAT)

Summary of Key Changes

As a result of Brexit, there are a few changes related to finance.

  • Electricity will be subject to customs declarations in the United Kingdom and The Netherlands.
  • VAT treatment may change depending on your circumstances.
  • Customers will need to ensure their collaterals on JAO cover the participation in the Day Ahead (Explicit) auction

Customs Declarations

Following continued discussions with authorities in the UK and Netherlands, we have confirmed the arrangements for customs declaration in the UK and Netherlands.

UK:

  • In the UK, BritNed will make monthly declarations for import and export. This will be an aggregated figure and based at the GB reference point rather than the Mid North Sea reference point.

NL:

  • In the Netherlands, BritNed will make monthly declarations for export only. Import has been determined to not be required. This will be an aggregated figure and based at the NL reference point rather than the Mid North Sea reference point.

We do not believe that there is anything further that our customers need to submit as BritNed is making this declaration as a Fixed Transport Installation in both countries. This is BritNed's view but please consult with a customs expert for your specific circumstances.

Additional Information

UK links:

NL links:

The following links are from the Tax and Customs Administration in the Netherlands. The websites are in Dutch but can be easily converted to English using Google Chrome, simply right click on the page and select' Translate to English'

VAT Treatment

Long Term & Day Ahead

JAO does not charge Market Parties who are not registered in Luxembourg with VAT. It is the responsibility of each Market Party to declare the invoices to their local revenue authority and pay the VAT at the country of their registration under the reverse charge procedure. This information is in the footer of each JAO invoice. Further questions should be directed to JAO.

Intraday

This is how BritNed treats VAT for Intraday:

GB to NL Flow NL to GB Flow
UK VAT Return No change

VAT remains at 20%
UK customers need to register invoices under non-EC transactions instead of EC transactions

VAT remains at 0%
NL VAT Return EU customers need to register invoices under non-EC transactions instead of EC transactions

VAT remains at 0%
No change

VAT remains at 21%

This is our view but please consult with the HMRC or a tax expert for your specific circumstances.