At the end of the transition period, the government will remove the low value consignment
relief (LVCR) in GB and introduce a new model for the VAT treatment of goods arriving into
the UK and goods located in the UK which are sold by overseas suppliers where the
supplies are facilitated through an online marketplace.
LVCR relieves import VAT on consignments of goods not exceeding £15 in value. It is being
removed in GB in order to combat widespread abuse and to avoid trade distortion. LVCR will
continue to apply in Northern Ireland as required by the Northern Ireland Protocol (the
Protocol) to the Withdrawal Agreement but will not apply to goods that are ordered remotely.
For imports of goods from outside the UK into Great Britain (GB) in consignments not
exceeding £135 in value, the point at which VAT is collected will move from the point of
importation to the point of sale. Supply VAT, rather than import VAT, will therefore be
chargeable on these supplies. Goods imported into Northern Ireland (NI) will remain subject
to import VAT. Goods located in the UK that are subject to these changes are not limited to a
monetary value limit.
Online marketplaces that facilitate supplies subject to the measure will be responsible for
collecting and accounting for the VAT, other than on goods located in NI that are supplied to
NI customers. This will require the relevant online marketplace to register (if not already
registered) and account for VAT to HM Revenue and Customs (HMRC).
For imports of goods in consignments not exceeding £135 in value sold directly to UK
consumers (without online marketplace facilitation), the overseas seller will be required to
register (if not already registered) and account for the VAT.
If a business customer provides its VAT registration number to the seller or online
marketplace, the VAT will be accounted for by the business customer for imported goods, or
as now by the underlying supplier if the goods are located in the UK.
This measure does not apply to imported consignments containing goods subject to excise
duty (alcohol products including beers, wines and spirits; tobacco products including
cigarettes, cigars and loose tobacco; and energy products including hydrocarbon oils and
biofuels for use as motor or heating fuel).
This measure does not apply to movements of goods between the European Union (EU) and
NI.
Source: gov.uk
