Neil Warren considers the introduction of two reporting systems in the EU from 1 July 2021 and also new VAT rules for importing low value shipments of goods
Many GB businesses exporting low value shipments of goods to the EU have found the procedures very tricky since the end of the transitional deal on 31 December 2020. Arrivals in the EU are now subject to VAT and import duty – the free movement of the single market no longer applies. But a new system is being introduced by the EU on 1 July 2021, which should make procedures easier for shipments with a value of €150 or less. And, on the same date, the principles of the EU’s Mini-One-Stop Shop (MOSS) are being extended to include more supplies than just broadcasting, telecommunication and electronic services. This will make VAT accounting easier for many UK businesses.