Tax & VAT Post-Brexit

In this section: VAT, import VAT, Distance Selling, low value consignment relief, digital services, VAT triangulation, EORI Numbers

The agreement did not amend the VAT changes that came into place on 1 January 2021. The UK have left the EU’s VAT zone. The changes include import VAT (though the UK Government has already announced postponed accounting for import VAT from 1 January 2021) becoming applicable, the loss of Distance Selling thresholds for UK e-commerce sellers of goods to EU consumers and scrapping of low-value consignment stock relief.

UK sellers of digital services to EU consumers, the UK are no longer a member of the EU Mini OneStop-Shop single VAT return scheme. A special VAT fiscal representative (who will hold direct liability for any VAT unpaid) will likely be required to any UK business with a foreign VAT registration in the EU. There is also the loss of VAT triangulation.

The agreement outlines an aim to align to already agreed OECD standards on tax, including on tax avoidance, information sharing. However, these commitments are not subject to dispute resolution.

For frequently asked questions on VAT, including EORI numbers, please visit our FAQs page.