In June 2016, United Kingdom citizens voted to leave the European Union. The UK’s departure from the EU, also known as Brexit, will occur on 31 December 2020. Starting on 1 January 2021, online businesses will need to comply with local laws specific to online commerce.
All imported goods purchased will be subject to VAT — ending the current £15 VAT exemption thresholds, known as Low-Value Consignment Stock relief.
Imported consignments of goods not exceeding £135 will be subject to sales (supply) VAT instead of import VAT. This will be charged to the UK consumer by the non-UK seller in the checkout at the point-of-sale. The seller will then report and pay the collected VAT through a regular UK VAT return. A simplified customs declaration will still be required. Goods above this value will be subject to VAT and customs in the current way.
Imported goods above £135, or consignments of multiple goods with a combined intrinsic value above £135, will use the existing import VAT procedures. This means the seller may pay the import VAT (and duties) on clearance, and reclaim if they have a UK VAT number. Alternatively, the seller may opt to have their customer may pay at customs or to the delivery agent.
We have applied for a VAT registration number but have yet to receive it. We are temporarily pausing all sales to the UK until we are able to comply with UK B2C ecommerce reforms. We apologize for any inconvenience this may cause.