Are you an EU business distance selling to the UK?

European businesses that distance sells into the UK have to register for UK VAT if the value of their distance sales is more than £70,000 in a year. If you distance sell excise goods like alcohol and tobacco then you’ll have to register for UK VAT and Excise Duty no matter how much your sales are worth.

Does distance selling apply after Brexit?

Sellers from EU countries will see the biggest changes, as the EU VAT distance selling rules no longer apply to sales to UK customers, and for consignments over £135, the customer may have to pay VAT and Customs duty in addition, although the sale from the EU will be VAT-free.

Does EU reverse charge still apply after Brexit?

On 31 December 2020, the United Kingdom left the EU and as a result, became a third country for VAT purposes. Therefore, for companies trading with the UK (excluding trade in goods with Northern Ireland*), the rules of trade with a non-EU country apply.

Can a UK company claim back EU VAT after Brexit?

As the U.K. is no longer a member state, U.K. businesses cannot use the EU online VAT refund system and submit online claims via the U.K. tax authority, HM Revenue & Customs (HMRC) website to claim back the VAT paid on costs incurred in EU member states after the end of 2020.

What is meant by distance selling?

Distance selling refers to the sale of goods or services without the buyer or seller being physically present simultaneously.

What is the UK VAT threshold?

£85,000
You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt. You can also register voluntarily.

Can I sell to EU after Brexit?

Once the Brexit transition period is over, if you sell digital services to EU customers, you’ll no longer be able to use the UK’s VAT Mini One Stop Shop (MOSS) service to declare sales and pay VAT due in EU member states. VAT in each EU member state where you sell digital services to consumers.”

What is the UK VAT threshold for 2021?

The VAT threshold currently stands at £85,000 for 2021/22 tax year in the United Kingdom. You must register with HMRC if your VATable turnover trips the threshold for Value Added Tax. Remember, these sales tax thresholds operate on a rolling 12-month period.