The UK will leave the EU VAT area at the end of the Transition period on 31 December 2020. From 1 January 2021, there will be fundamental changes to the VAT treatment of goods arriving into Great Britain.
The changes are intended to ensure that goods imported from EU and non-EU countries are all treated in the same way and that UK producers are not disadvantaged. However, the change means that any business that imports goods from the EU will be significantly impacted.
Robert O’Hare and Tim Jarvis look at the basics and highlight, in particular, some of the implications for direct sellers and online marketplaces (OMP).