Since Brexit, the United Kingdom (UK) has continued to collect VAT and the parameters for doing so on UK domestic transactions still apply to businesses, as it did before.
Whilst VAT procedures are mainly the same as they were prior to 31 December 2020, there have been some elements of change for transactions between the UK and European Union (EU) member states.
Following the UK’s VAT rules:
From 1 January 2021, the rules for imports from the EU to the UK were made to be similar to the previous existing rules for imports from non-EU countries but include slight variations.
UK businesses that are registered for VAT can still apply a zero-rate on goods sold to EU businesses – import VAT and customs duties or tariffs are applied when the goods are received in the EU.
Our team of VAT experts have produced a helpful flow chart to help businesses supplying goods into the UK, from the EU and other countries.