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What are the VAT rules after Brexit?

What are the VAT rules after Brexit?

VAT after Brexit As a result of the UK leaving the EU some rules relating to VAT have changed including: The UK no longer has to comply with the EU’s minimum VAT rate of 15 per cent. All goods now moved between the EU and UK are counted as imports and exports meaning they are subject to import VAT.

Is IOSS mandatory?

IOSS is again optional. And if it’s not used then a UK seller would continue to zero rate the export for domestic VAT purposes, and the VAT is applied upon import. However, IOSS offers a way of accounting for VAT to reduce confusion for customers, in that they can see a single accurate cost.

Will VAT increase after Brexit?

Domestic VAT rules remain the same following the end of the Brexit transition period. However, VAT rules relating to imports and exports to and from the EU have changed.

What is the VAT threshold for 2021?

In the UK, the VAT registration threshold is currently £85,000 (2021), and the most recent UK VAT thresholds are: 2014-2015: £81,000. 2015-2016: £82,000.

Do you pay VAT twice Brexit?

As a consequence, at the time of delivery, the carrier will ask the British customer to pay the VAT in order to receive his parcel. In return, the seller has to issue the invoice not including the VAT. If the invoice includes VAT, the customer will pay the VAT twice.

Do I have to pay VAT on goods from EU to UK?

Under the UK’s VAT rules: VAT is charged on most goods and services sold within the UK and the EU. VAT is payable by businesses when they bring goods into the UK. Goods that are exported by UK businesses to non-EU countries and EU businesses are zero-rated, meaning that UK VAT is not charged at the point of sale.

Do I need an IOSS number UK?

Remember! IOSS is not mandatory. You can still send in to the EU completely fuss-free, regardless of the shipment value and even without an IOSS number via our hybrid EU parcel delivery service.

Who needs to register for IOSS?

1. Selling through a marketplace. If you sell through a marketplace, they are likely to have registered for IOSS. If so, you just need to assign their IOSS number along with all the normal customs data in the pre-advice to us for the items sold through that marketplace.

Is there still reverse charge after Brexit?

EU reverse charge after Brexit After Brexit, businesses based in Great Britain (England, Scotland, and Wales) can no longer apply the reverse charge to EU sales. However, businesses based in Northern Ireland can still apply the reverse charge as normal because they are still within the EU VAT area.

How do I avoid VAT threshold?

If you happen to offer a variety of products or services which are distinctly different, you may be able to avoid passing the VAT threshold by chopping up your business into smaller businesses that handle one product or service each. Your annual revenue is now split up between these separate businesses.

How do I avoid paying VAT twice?

How to avoid a double payment of VAT? To avoid the UK customer paying the VAT twice when the consignment has a value of more than GBP 135, the solution that seems most obvious is simply not to charge VAT at the time of sale and let the carrier charge the VAT to the customer at the time of delivery.