Brexit
Since January 1, 2021, the United Kingdom is no longer part of the EU VAT system, the single market, and the customs union. As a result of Brexit, the UK is now classified as a third country in terms of VAT, customs, and certain EU regulations. This has significantly changed e-commerce and online selling between the EU and the UK.
Key Changes for Online Sellers 🚨
- Abolition of Low-Value Consignment Relief: The previous exemption from import VAT on consignments valued at £15 or less no longer applies. ❌
- VAT Collection by Online Marketplaces: Online marketplaces are now responsible for collecting VAT on certain transactions. 🛒
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VAT Registration for Overseas Sellers:
- If goods are shipped from overseas and sold directly to UK consumers (excluding marketplaces), the overseas seller must register for and pay VAT in the UK. ✈️📦
- If goods are already in the UK at the point of sale, the responsibility for charging VAT shifts from the seller to the marketplace operator. 🔄
- If goods are already in the UK and sold directly to UK consumers without the involvement of a marketplace, the overseas seller remains responsible for charging VAT. 🏬
For more details, check out our full Brexit update here. 📖
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Verified - EA - 21.01.2025
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