At 11 pm on 31st December 2020, the Brexit transition will be complete. From the 1st January 2021 the majority of Great Britain (England, Scotland and Wales) VAT will be due at the point of sale that is sold directly to a consumer from outside of the region of a consignment of goods with a value of £135 or less. This value applies to the total value of the purchase rather than the individual value of each item.
There are exemptions to this rule including:
- Non Commercial goods
- Excise Goods
- Goods from Guernsey and Jersey when VAT is paid under the Import VAT Accounting Scheme
If a seller receives payment before the 31st deadline this December but dispatches the product after the deadline, they will not be required to adhere to these new rules.
The new VAT direction for Northern Ireland has not yet been published.
If you require additional information relating to any VAT complications, such as the list below, or if you would like to talk to us about your companies VAT compliance, please contact our team.
- Implications relating to B2B transactions within the UK or outside the UK
- Products with a point of sale outside the region
- How do you deal with additional costs, including insurance and transport that are not included in the costs
- Import VAT and Customs Duty complications due to the seller makes changes to the value of the products that bring the total value of the consignment over £135.
If you are not sure if your company is fully VAT compliant, why not talk to us about our VAT Health Check. It is a cost-effective way to ensure your VAT processes are compliant and that you are optimising your VAT reclaim.
Call: +353 1 458 7460
Email: info@globaltaxreclaim.com
