Sarah Shears discusses VAT after Brexit and the potential impacts on businesses
Sarah Shears, Director and Head of VAT at Andersen in the UK, discusses VAT after Brexit and the EU’s One Stop Shop, in Croner-i: Business Inform.
Sarah’s comments were published in Croner:i: Business Inform, 7 July 2021. Read her interview here.
“Croner-i Business-inform spoke with Sarah Shears, Director and Head of VAT at Andersen, and began by asking Sarah to briefly outline the changes to VAT rules after Brexit.
“From 1 July 2021, the VAT rules on cross-border business-to-consumer (B2C) e-commerce supplies are changing. These changes aim to overcome the barriers to cross-border online sales and address challenges arising from the distance sales and importation of low-value consignments regimes.
“The existing thresholds for distance sales of goods within the EU will be abolished and replaced by a new EU-wide threshold of EUR 10,000. Below this threshold, supplies of telecommunications, broadcasting and electronic (TBE) services and distance sales of goods within the EU may remain subject to VAT where those goods are located at the time of dispatch, or transport begins, or the supplies of TBE services are made in the Member State where the taxable person is established.
“The VAT exemption at importation for small consignments of a value up to €22 will be removed. This means all goods imported into the EU will now be subject to VAT. However, a new special scheme, the Import One Stop Shop (IOSS), has been created for distance sales of low-value goods imported from third non-EU countries to simplify the declaration and payment of VAT.
“Simplification measures for distance sales of imported goods in consignments not exceeding €150 are also being introduced from 1 July 2021 where the IOSS is not used.””