EU VAT - Can we now deregister?

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Seller_kid3jquGqIesA

EU VAT - Can we now deregister?

Hi,

Can anyone offer some advice on whether we can now de-register for EU VAT post Brexit? I believe that we should be able to based on the following:

We currently hold VAT registrations in the UK, but also DE, FR and IT due to previously breaching the distance selling thresholds PRIOR to Brexit. Post Brexit (as I understand it), there are no distance selling thresholds for EU VAT as all orders sent from the UK are treated as Zero rated exports.

If we send our items to the EU as DDU for orders under Euro 22,00 and DDP via a courier for those over Euro 22,00 then we are still fulfilling Amazon’s requirements for the customer not paying any duties or taxes but to the best of my knowledge we do not have a VAT liability to the French, German or Italian authorities as the exports are zero rated.

Our business is structured as follows:

  1. We are a sole trader selling cosmetics with an average order value of around £15

  2. All of our stock is held in the UK

  3. We do not import any stock. All is sourced from the UK

  4. All of our stock is sent by post using Royal Mail (airmail)

  5. We list on Amazon UK, DE, FR, IT, ES (although the EU channels are currently on holiday mode until we have more clarity on what is going on).

On this basis:

a) Can we deregister for VAT in FR/IT/DE and
b) Is it likely that deregstering will cause our EU sites to be suspended?
c) In July, the marketplaces will be responsible for collecting VAT anyway (unless this date is postponed again) and so if the only platforms that we are selling on are marketplaces then there should be no need anyway to be registered for VAT anywhere apart from the UK.

If anyone can offer any pearls of wisdom then I would be extremely grateful!

Kind regards

Steve

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Tags:Holiday, International expansion
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Seller_qZO3ZCjoBXEeL

I’d hold off for now. The import threshold in the EU will drop to 0 in July, at the same time as they launch a one-stop registration for VAT covering the whole EU.

At the same time, EU marketplaces will have the same directive as just put into place in the UK - all overseas marketplace orders under EUR150 will have to have VAT collected at source by the marketplace (i.e. Amazon).

Everything will be changing (again)

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