Brexit has taken a bit of a back seat but changes which will affect thousands of businesses will apply from 1 January 2021.
Businesses trading online or by mail order will be the primary ones affected, and the changes will be significant.
The position now is that businesses selling to consumers (not businesses) can sell their goods or service in any other EU country without having to register for VAT (or its local equivalent) in that country, provided sales to the country do not exceed the “Distance Selling” thresholds. These vary from country to country but are reasonably generous. Germany has a threshold of €100,000 but the threshold in France is only €35,000.
From 1 January 2021, UK businesses will not be able to take advantage of the Distance Selling thresholds. If this applies to you, you need to sort out another solution – otherwise you will be required to register, and report, VAT in each EU country where you do business. This is probably not a viable solution for most businesses.
There are various, possible solutions. Some better than others. Discussing the various options here would create a long (boring!) article for anyone not selling to consumers in the EU. If you believe you may be affected, or plan to be, you can contact us for a more in-depth discussion of the possibilities.
Video discussions happen regularly so you can sit at home or in your office to have a chat. Alternatively, we have a large meeting room where 4 or 5 people can sit and follow social distancing regulations.
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Don’t forget, we want your business to succeed. Talk to a professional who can give you help, support and advice.