HM Revenue & Customs (HMRC) (link is external)says that with effect from 11pm on 31 December, when the transition period ended, consignments of goods with an aggregate value of £135 or less (excluding shipping costs) will have VAT added at the point of sale, whether in the EU or elsewhere abroad.
That means that brands or online retailers based abroad that sell directly to shoppers in the England, Scotland and Wales (separate rules apply to Northern Ireland(link is external)) must register with HMRC for VAT and account for the tax on goods sold here below that threshold, including paying an annual fee to do so – something that Dutch Bike Bits, to return to that example, says makes it impossible to continue selling to people here due to the costs and the administrative burden involved.
Source: road.cc
Latest Posts in "United Kingdom"
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
- Lowering VAT Threshold Risks Breaching Labour’s Manifesto, Warns Self-Employed Association
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
- Tribunal Rules Government Grants Not Consideration for VAT in Further Education Sector
