In his second article, Neil Warren considers practical VAT issues that will apply from 1 January 2021 when the UK’s transitional deal ends with the EU, focusing on goods involving overseas sellers and online marketplaces
What will be the significance of a shipment of goods that arrives in GB from 1 January 2021 that has a value of less than £135? The answer is that the goods will be subject to ‘sales VAT’ from this date, rather than ‘import VAT', if they are being imported by an overseas seller. This is a major change in procedures, and there are some tricky twists and turns to consider. The VAT issues will also affect the buyers of the goods, as well as online marketplaces from which overseas sellers advertise their goods in many cases.