Since the 1st of January 2021, the UK is no longer part of the EU and is no longer profiting from the EU VAT regime, the single market and the customs union. With the Brexit the United Kingdom is seen as a third country in regards to the VAT, customs and some EU regulations. This has changed e-commerce and online selling between the EU and the United Kingdom.
The main changes for online sellers are:
- Abolition of the Low Value Consignment Relief, which exempts import VAT on consignments of goods worth £15 or less
- Online marketplaces are liable for the collection of VAT.
- For goods shipped from overseas and sold directly to UK consumers (excluding marketplaces), the overseas seller need to register for and pay VAT in the UK
- For sales of goods by overseas sellers where the goods are already in the UK at the point of sale, the responsibility for charging VAT is transferred from the overseas seller to the marketplace operator
- Overseas sellers continue to be responsible for charging VAT on goods already in the UK and sold directly to UK consumers without the involvement of marketplaces.
For more information on Brexit, please read our blog post.