Ecommerce VAT customs rules changed on 1 Jan 2021
Avalara can help ensure OnBuy.com sellers minimise the new Brexit import taxes and keep their goods moving
Online merchants selling between the UK and EU face hard choices as the VAT and customs rules change at the end of the UK’s Brexit transition period on 31 December 2020. Act now to pivot to new compliance obligations or:
- Face high import taxes;
- See goods stopped at customs; and
- Have an poor shopper experience.
Avalara can provide FREE guidance on the changes, and what you can do now to prevent any disruption to your sales.
What changes on 1 January 2021?
- UK sellers to EU customers can no longer sell under their UK VAT number if they are below the local distance selling thresholds. Whilst they may try make their EU shoppers pay the EU VAT at customs, this will be an unpleasant shock for the customer and mean no repeat business. So an EU VAT registration may be the simple answer.
- EU, US or any overseas seller to UK customers will have to charge UK VAT in the checkout on any sale to a UK shopper if not exceeding £135. This will require a UK VAT registration. Sales above this limit can be done through EU VAT registrations, or the seller can require the customer to pay the EU import VAT can customs duties. Not the best seller experience!
Contact Avalara for free guidance on how the changes may affect you, and the best steps to take next.
Working with OnBuy.com, Avalara’s international VAT registration and returns service can ensure your VAT is done right, your taxes minimised and your shipments continue to flow.
Avalara's Managed Returns Service advantages
Save time and costs
Cut the time and cost of doing you own international VAT registrations and returns, with less risk to fines
Access in-market experts
VAT experts, with local language and knowledge keep you up-to-date on your reporting obligations
On-top & always prepared
Whether it's questions from the local tax authorities or an audit to undertake, you'll be prepared
Get fiscal representation
Speedy VAT registrations, ongoing filings, Intrastat, EC Sales List, and access to VAT deferment schemes
Contact us to discuss how you can:
- Outsource the entire VAT registration and returns process, allowing you to concentrate on your core business activities
- Cut the cost of doing international VAT registrations and returns
- Decrease exposure to international VAT fines and penalties
- Gain real-time access to a web-based VAT management reporting tool, which offers full visibility over all VAT activities
