Brexit: UK VAT changes impacting e-commerce

19 October 2020

From 1 January 2021, HMRC will introduce changes to the VAT treatment of goods sold from overseas businesses to UK consumers, either directly via import or via online marketplaces. 

The first reform will apply to both overseas and UK businesses who sell and ship goods directly to consumers in the UK, at a value less than £135. This threshold is based on the sales value of the goods only and excludes all shipping costs. 

When undertaking these types of transactions, sellers will not pay VAT at import and will instead have an obligation to charge VAT to the consumer via their website. They will then remit this VAT to HMRC via a UK VAT return. 

A further rule change means that for goods being sold by non-UK suppliers via online marketplaces, the online marketplace could be considered as the “deemed supplier”. This means the online marketplace will be responsible for charging the VAT on these types of transactions and will be the company remitting the VAT to HMRC. This will effectively take away the VAT reporting requirements for the non-UK sellers.

If you are involved in these types of sales and require further help with your VAT reporting in the UK after January 2021, then please contact us for further information here.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

Get in touch

Let us solve your current business VAT challenges

CONTACT US

E-commerce VAT

READ MORE

VAT registration

READ MORE
LATEST NEWS

Morocco introduces VAT on e-services for non-resident...

From 14 February 2024, Morocco introduced VAT at 20% on the sale of digital services by non-resident providers to local consumers.  Previously, foreign...

SEE MORE
VAT news
LATEST NEWS

Polish Ministry of Finance issues new National...

The Polish Ministry of Finance recently announced a round of nine public consultations ahead of a newly proposed July 2025 launch date of KSeF B2B e-invoicing...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Belgium confirms the introduction of mandatory...

During February 2024, the Bill legislating for mandatory B2B e-invoicing in Belgium was gazetted, confirming the introduction of an e-invoicing regime from 1...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.