import VAT

Changes to the Import VAT Regulations for UK and EU

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Changes to Import VAT Regulations for UK and EU business

Changes take effect from 1 January 2021 in the UK, and from 1 July 2021 in the EU.

In 2021, there will be significant changes to the collection of VAT on items imported into the UK and EU, as well as certain shipments within the EU. We have outlined below how these will affect Amazon and eBay sellers.

While Amazon and eBay are preparing for these changes. if you sell internationally to buyers in the UK or EU. You should also assess the impact on your business and prepare for the changes.

The UK VAT rate is 20%.

From 1 January 2021, the UK will introduce a new model for collecting VAT on imports.

The changes at a glance

  • Amazon and eBay will collect and remit VAT on orders up to a value of £135 imported into the UK and sold to consumers. There will no longer be a VAT exemption for small consignments up to £15.
  • In cases where the seller is a non-UK business and the goods are already in the UK. Amazon or eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.
  • If the buyer is a UK VAT registered business and provides their valid UK VAT registration number. Amazon or eBay will not collect UK VAT. Sellers will  responsible to account for VAT will switch to the UK VAT registered business customer.
  • All sellers listing on Amazon or eBay will have to provide a gross price and separate VAT rate. So that Amazon or eBay can determine the correct amount of VAT to collect from consumers. For non-EU/UK sellers, unless you have included UK or EU VAT in your pricing calculations, the VAT rate will usually be 0%.
  • All prices on Amazon and eBay will be displayed inclusive of UK VAT.
  • Where Amazon or eBay is responsible for collecting VAT on orders sent to a UK delivery address. This amount will also be shown separately at checkout.

Changes to EU VAT for cross-border Ecommerce

There are different VAT rates applied in different EU countries. From 1 July 2021, the EU will introduce significant changes to how VAT is collected on imports into the EU. Supplies within the EU by non-EU sellers and cross border supplies by EU sellers.

The changes at a glance

  • Amazon and eBay will collect and remit VAT on orders up to a value of €150 imported into the EU and sold to consumers. There will no longer be a VAT exemption for small consignments up to €22.
  • For goods where the seller is a non-EU business, but the goods are already within the EU. Amazon and eBay will collect and remit VAT on sales to consumers within EU countries, and from one EU country to another.
  • All sellers listing on European Amazon and eBay sites will have to provide a gross price and separate VAT rate.  So that Amazon and eBay can determine the correct amount of VAT to collect from consumers. For non-EU/UK sellers, unless you have included UK or EU VAT in your pricing calculations, the VAT rate will usually be 0%.
  • The current distance selling thresholds for intra-EU cross-border supplies will be abolished. EU sellers with an annual turnover of more than €10,000 for their complete intra-EU cross-border supplies will have to charge the VAT of the EU country of delivery.

Please contact us if you have any questions about your tax obligations.