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Video : UK VAT changes for E-commerce sellers – What matters to you?
UK HMRC updated its guidance, “Changes to VAT treatment of overseas goods sold to customers from 1 January 2021” on 5 October 2020. The guidance which was first published on 20 July 2020 sets out a significant change on how and when VAT is to be accounted by non-UK established sellers who sell goods to UK businesses and consumers directly and using Online Market Places (OMPs) that “facilitate” sales of goods.
Hello everyone this is Emily from TB accountants.
Today I would like to inform you about the changes to VAT treatment of overseas goods sold to customers from 1st January 2021.
This was mainly for their non-UK established seller for selling goods to the UK. Business and customers and using online marketplace OMPs that facilitates sales of goods.
So, what are the changes?
First of all, for the £15.00 low value consignment relief, our imported goods will cease to apply. VAT will be due on all consignments arriving to the UK, unless the goods are eligible for VAT relief, I.e. PPEs (Personal Protective Equipment).
Second, most overseas sellers selling goods located outside the UK at the time of sales, value at £135.00 or less, will now have UK VAT obligations.
Third, OMPs, (Online Market Place), that facilitates the sales of good, were boldly to be responsible for collecting and payment of VAT.
To conclude, number one, from 1st January 2021, the overseas goods sales threshold of EU members states, will no longer apply to the UK.
For companies established outside the UK, there’s no minimum value for VAT registration. So, according to the new measure, if you have VAT obligations, you will need to register for the UK VAT.
Number two, understand the UK VAT rate, corresponding to the product. For example, standard rate 20%, reduce the rate 5%, or zero rate 0%.
Number three, if the goods are located outside the UK, it is necessary to distinguish, or confirm, whether the total package value of important consignment exceeds £135.00.
If it is a B2B, there is no need to pay UK VAT via the online platform, but you will need to declare yourselves as normal.
Should you have any questions, or you would like us to make representations to HMRC, then please do not hesitate to contact us.
Running a business is an immensely rewarding experience, but staying on top of your finances can be challenging. TB Accountants was founded in 2009 to give business owners the peace of mind they need to focus on what really matters to them: their customers and their products.
Today, with over ten years of experience, we have successfully helped businesses with accounting, financial, VAT and other tax services.
Our head office is located in the UK. We also have two branches in China and a branch in the US. Book an appointment with one of our team today.
Video: UK VAT changes for E-commerce sellers – What matters to you?
UK HMRC updated its guidance, “Changes to VAT treatment of overseas goods sold to customers from 1 January 2021” on 5 October 2020. The guidance which was first published on 20 July 2020 sets out a significant change on how and when VAT is to be accounted by non-UK established sellers who sell goods to UK businesses and consumers directly and using Online Market Places (OMPs) that “facilitate” sales of goods.
Hello everyone this is Emily from TB accountants.
Today I would like to inform you about the changes to VAT treatment of overseas goods sold to customers from 1st January 2021.
This was mainly for their non-UK established seller for selling goods to the UK. Business and customers and using online marketplace OMPs that facilitates sales of goods.
So, what are the changes?
First of all, for the £15.00 low value consignment relief, our imported goods will cease to apply. VAT will be due on all consignments arriving to the UK, unless the goods are eligible for VAT relief, I.e. PPEs (Personal Protective Equipment).
Second, most overseas sellers selling goods located outside the UK at the time of sales, value at £135.00 or less, will now have UK VAT obligations.
Third, OMPs, (Online Market Place), that facilitates the sales of good, were boldly to be responsible for collecting and payment of VAT.
To conclude, number one, from 1st January 2021, the overseas goods sales threshold of EU members states, will no longer apply to the UK.
For companies established outside the UK, there’s no minimum value for VAT registration. So, according to the new measure, if you have VAT obligations, you will need to register for the UK VAT.
Number two, understand the UK VAT rate, corresponding to the product. For example, standard rate 20%, reduce the rate 5%, or zero rate 0%.
Number three, if the goods are located outside the UK, it is necessary to distinguish, or confirm, whether the total package value of important consignment exceeds £135.00.
If it is a B2B, there is no need to pay UK VAT via the online platform, but you will need to declare yourselves as normal.
Should you have any questions, or you would like us to make representations to HMRC, then please do not hesitate to contact us.
Running a business is an immensely rewarding experience, but staying on top of your finances can be challenging. TB Accountants was founded in 2009 to give business owners the peace of mind they need to focus on what really matters to them: their customers and their products.
Today, with over ten years of experience, we have successfully helped businesses with accounting, financial, VAT and other tax services.
Our head office is located in the UK. We also have two branches in China and a branch in the US. Book an appointment with one of our team today.
