Change in legal set-up in UK impacting VAT treatment of our services
We hereby inform you on a change in legal set-up of Maersk A/S in the UK due to Brexit, which will impact the VAT treatment of services provided by our company to our UK customers as of 1 January 2021.
At the moment, Maersk A/S operates in the UK through a registered legal branch, through which Maersk A/S is considered having a VAT fixed establishment and therefore considered as a resident for VAT in the UK. Based on this some of the services supplied by Maersk A/S in the UK are currently invoiced with UK VAT.
As of 1 January 2021 Maersk A/S will change its legal set-up in the UK. The branch will no longer be used and will be deregistered. Maersk Logistics & Services UK Ltd. will be appointed as agent for Maersk A/S. Maersk Logistics & Services UK Ltd. will only be acting on behalf of Maersk A/S, meaning that Maersk A/S is the legal recipient and beneficiary of any services procured.
Considering the above change in legal set-up in the UK, Maersk A/S will no longer be considered having a VAT fixed establishment and as such is no longer considered as a resident for VAT in the UK. As of 1 January 2021, invoices for supplied services will therefore be issued by Maersk A/S utilizing its VAT number and address in Denmark:
DK-1263 Copenhagen K
VAT number: DK 53 13 96 55
VAT implications for you as a customer
The above impacts the VAT treatment for you as a customer concerning services provided to you by Maersk A/S as of 1 January 2021. As a non-resident, Maersk A/S will not charge UK VAT on any of its services provided to your company. If VAT would be due, you as a customer should account for VAT in the UK in accordance with UK VAT law.
In summary: invoices for services as of 1 January 2021
- You will receive invoices without UK VAT
- If VAT is due, this is due in the UK by you in accordance with UK VAT law
What changes should you expect on the invoice from 1st of Jan 2021
- Name of the new agent and address on the top of the invoice header
- Name of the principal entity and its address and VAT details
This change in agent will not have any impact on your current contract for the credit terms with us which will remain in force with Maersk A/S as the Principal on unchanged terms and conditions.
Please also note that there is no change to our bank accounts for making payments.
Should you have any questions or comments further to this communication, please reach out to your finance contact person at our company.