Navigating EU VAT - New VAT regulations in the EU from 1st July, 2021
BY:
Richard Jaques
8 June 2021
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Changes to EU VAT from July 2021
Since the end of the Transition period, accounting for VAT has been a major issue for UK businesses making VAT payable deliveries into the EU.
Those UK businesses opting to pay VAT on import to an EU member state, have been required to appoint a local fiscal representative to make the appropriate VAT returns (and where applicable, any VAT reclaim) on their behalf, in that member state.
The new VAT regulation may affect some of those UK businesses that have employed fiscal representation.
For those businesses selling on an on-line marketplace, VAT management will change completely, as part of EU long-term measures to combat VAT fraud.
From the 1st July 2021, some of these changes will include:
1. Abolishing distance sales thresholds and extending the Union MOSS scheme to cover sales of goods as well as all B2C services.
2. Abolishing the small consignment relief of €22 and introducing an import scheme for goods up to €150 in value where VAT must be charged at the point of sale and accounted for using IOSS – The Import One Stop Shop
3. On-line marketplaces such as Amazon will become the ‘deemed supplier’ of goods in certain situations, which will mean their having responsibility for VAT collection at the point of sale
4. Extending the non-Union (3rd country) MOSS to cover all B2C supplies of services.
The VAT implications of supplying goods or services to overseas customers or receiving supplies from overseas suppliers are often not understood, and failure to account for VAT properly or follow the correct procedures could lead to penalties. This course takes you through the rules in a thorough, logical and enjoyable way, with plenty of worked examples.
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