The UK is due to formally exit the EU’s single market and customs union (informally known as “Brexit”) on 1 January 2021. From this date, the UK is expected to introduce a new set of VAT rules, which may change the way that VAT is accounted for on your sales to UK customers.
If you deliver goods to UK customers who are not registered for UK VAT:
If you deliver goods to UK customers who are registered for UK VAT (B2B customers):
The UK government is expected to publish the legislation for these changes during Q4 2020. We are here to help you prepare for these changes, and we will keep you updated on any changes to current expectations.
The new VAT rules in UK are expected to affect your business if you are either:
Sellers will still remain liable to meet their VAT registration obligations in the UK and account for any UK VAT due on sales, purchases, and importations outside of the above sales.
Please ensure that your Seller Central account details are up-to-date and that you continue to provide list prices that are inclusive of VAT for any marketplaces you list on. We will provide further information on what these changes mean for you and how to best prepare for these changes on this Help page as soon as further information is available.
Please also note that the above changes do not alter your VAT registration obligations. If you need help with VAT Registration and filing in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, visit VAT Services on Amazon to sign up today.