One of the first changes that British businesses will experience with Britain’s exit from the EU looming will be the change in model for VAT treatment of goods being imported to the UK.
This change to VAT treatment will come into play from January 1st 2021.
The changes outlined in a recent Government statement are that there will be new model VAT treatment of goods into the UK. HMRC has said that all goods from the EU are treated as non EU and that UK businesses are not disadvantaged by competition from VAT free imports.
There are two strands to the measure which will change the way VAT is collected on sales of goods in the following circumstances:
– Goods sold to UK customers where the goods are located outside the UK at the point of sale and the supply involves the later importation of goods into the UK
– Goods sold to UK customers where the goods are in the UK at the point of sale, sold by overseas seller and where an online marketplace facilitates the sale.
This will mean the following types of businesses will have to register for UK VAT (if not already registered) and account for HMRC:
– Any business that operates an Online Marketplace that facilitates sales of goods to UK customers
– Any business that sells goods directly (without OMP involvement) to UK customers where the goods are outside the UK at the point of sale but imported to the UK in consignments not exceeding £135 in value
Current requirements for importers and agents will remain but systems will require to be extended to cover EU imports.
If you would like more information regarding changes to VAT treatment for overseas goods please click the link here which will take you to the government’s website with all the details.
If you have any recruitment enquires now or in the future then don’t hesitate to get in touch with our team here at Titan as we will be happy to assist you in any way we can.
0141 378 0180
info@titanrecruitment.co.uk
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