Since the beginning of 2021, the United Kingdom is no longer in the European Union, changing the dynamics of exchange and tax between the two borders. From the 1st July , new VAT rules come into effect for businesses who exchange goods with the EU.
New VAT package
In 2015, a VAT scheme called Mini-One-Stop Shop (MOSS) was created specially for digital goods. Now a new scheme called the Import One-Stop Shop (IOSS), that comes into effect on the 1st of July, has been created for all physical goods to ensure that e-commerces businesses comply to VAT regulations.
This new scheme means that businesses can declare all EU sales in one place by registering with IOSS, but only if stocks are in one country. If businesses cannot register IOSS then they will have to register in each country they sell goods in. An another important change is that online market places such as Amazon will have a responsibility to collect and pay VAT on behalf of their sellers for goods sold on their platforms.
Help available to move forward
HMRC are offering help you can apply for the SME Brexit Support Fund. Smaller businesses can get up to £ 2,000 to pay for practical support. including training or professional advice to adjust to new customs, rules of origin and VAT rules when trading with the EU. Applications must be received before 30 June. HMRC also hold webinars to adjust and understand new rules and keep businesses moving forward.
Support fund could give you up to £2,000 to help with training or professional advice, if your business has up to 500 employees and no more than £100 million annual turnover. The scheme is also available to help you with things like how to complete customs declarations, how to manage customs processes and use customs software and systems, specific import and export related aspects including VAT, excise and rules of origin.
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