The UK introduces new VAT regulations for overseas sellers, and import VAT is also required for cons
- Author:Kyrie
- Source:Sunny
- Release Date:2020-08-21
According to foreign media reports, the UK Revenue and Customs Service (HRMC) recently released a new value-added tax policy. From January 1, 2021, after the Brexit transition period ends, the British government will introduce a new border operation model. VAT is levied on goods imported into the UK. In addition to the United Kingdom, the latest developments in VAT collection in Austria and Chile are also worthy of attention.
Cancel low-value consignment relief
The main changes to the VAT for sellers outside the UK are:
1. For goods whose import value does not exceed £135 (consistent with the tariff liability threshold), the UK Revenue Agency will move the value-added tax collection point from the point of entry to the point of sale.
2. Cancel the low-value consignment exemption, that is, the consignment of goods with a value of 15 pounds or less will also be subject to import value-added tax.
3. Online marketplaces (OMP) in the UK will be responsible for collecting and accounting value-added tax.
4. For goods not sold through online shopping platforms, overseas sellers will need to register with HMRC and pay VAT. Among them, if the point of sale of overseas goods is already in the UK, the overseas sellers are responsible for VAT accounting transfer to OMP; if the goods of overseas sellers are already in the UK and sold directly to British consumers without OMP sales, the overseas sellers will continue to calculate VAT.
The United Kingdom stated that the change to the value-added tax is to ensure that EU and non-EU businesses can get the same treatment, and to ensure that British companies are not at a disadvantage. At the same time, the efficiency of levying value-added tax on imported goods has also been improved to solve the problem of non-payment of value-added tax on goods of British sellers already in the UK.
According to the New Deal, if a non-UK seller selling through OMP sells products to UK consumers, OMP will be responsible for VAT collection and reporting, and it will apply to goods of any value. B2B transactions are not included. If a non-UK seller who does not sell through OMP directly sells the product to a UK customer, the non-UK seller is still obliged to register and pay UK VAT.
From the point of view of the VAT change policy for products sold by overseas sellers to UK customers from January 1, 2021, Chinese sellers will need to register for UK VAT and pay taxes for products sold to the UK, and major e-commerce platforms It is also necessary to assume the responsibility of collecting and reporting value-added tax for imported goods sold in the UK.
To deal with the new VAT policy implemented on January 1, 2021, the relevant Chinese companies need to prepare in advance for VAT compliance, including applying for a British EORI number, so that goods can be shipped in or out of the UK. For sellers who have not registered a UK VAT tax number, they need to apply as soon as possible.
Cancel low-value consignment relief
The main changes to the VAT for sellers outside the UK are:
1. For goods whose import value does not exceed £135 (consistent with the tariff liability threshold), the UK Revenue Agency will move the value-added tax collection point from the point of entry to the point of sale.
2. Cancel the low-value consignment exemption, that is, the consignment of goods with a value of 15 pounds or less will also be subject to import value-added tax.
3. Online marketplaces (OMP) in the UK will be responsible for collecting and accounting value-added tax.
4. For goods not sold through online shopping platforms, overseas sellers will need to register with HMRC and pay VAT. Among them, if the point of sale of overseas goods is already in the UK, the overseas sellers are responsible for VAT accounting transfer to OMP; if the goods of overseas sellers are already in the UK and sold directly to British consumers without OMP sales, the overseas sellers will continue to calculate VAT.
The United Kingdom stated that the change to the value-added tax is to ensure that EU and non-EU businesses can get the same treatment, and to ensure that British companies are not at a disadvantage. At the same time, the efficiency of levying value-added tax on imported goods has also been improved to solve the problem of non-payment of value-added tax on goods of British sellers already in the UK.
According to the New Deal, if a non-UK seller selling through OMP sells products to UK consumers, OMP will be responsible for VAT collection and reporting, and it will apply to goods of any value. B2B transactions are not included. If a non-UK seller who does not sell through OMP directly sells the product to a UK customer, the non-UK seller is still obliged to register and pay UK VAT.
From the point of view of the VAT change policy for products sold by overseas sellers to UK customers from January 1, 2021, Chinese sellers will need to register for UK VAT and pay taxes for products sold to the UK, and major e-commerce platforms It is also necessary to assume the responsibility of collecting and reporting value-added tax for imported goods sold in the UK.
To deal with the new VAT policy implemented on January 1, 2021, the relevant Chinese companies need to prepare in advance for VAT compliance, including applying for a British EORI number, so that goods can be shipped in or out of the UK. For sellers who have not registered a UK VAT tax number, they need to apply as soon as possible.