Tuesday, 9 February 2021

VAT on purchases from the EU

Here is a quick reminder of the post Brexit VAT rules if you purchase goods from the EU either privately or as a business.

Before Brexit, if anyone purchased goods from the EU on an online platform (say Amazon or E-bay), VAT was paid at the rate charged by the country you purchased the item from. VAT would have been applied at the point of purchase and customers paid the price they saw advertised. In addition many EU businesses selling goods online were below the VAT threshold and there was no VAT charged.

Now all EU sellers have UK VAT charged automatically by online platforms that they use, and this is why some prices have increased by 20%. In addition any purchases from the EU over £135 will have VAT payable by the purchaser at the point of delivery, which could be your doorstep!

In addition because of the customs documentation required some sellers have increased their prices to cover the costs. Some have ceased selling to the UK completely. 

No comments:

Post a Comment