As advanced in a previous article, following Brexit, a lot of merchants in the EU
will no longer be dealing with UK customers because of the tax changes.
Moreover, shipping companies are introducing additional charges for shipments
between these two areas because they have had to make investments to adapt
their system to cope with this change. What exactly does this involve?
The new rules implemented by HM Revenue and Customs, became applicable on the 1st of
January. It states that VAT is now collected at the point of sale instead of at
the point of importation. As such, overseas retailers shipping products to the
country have to register for UK VAT and account for it to HMRC if the sale
value is less than €150 (£135). According to a spokesperson from the British
government, “The new VAT model ensures goods from EU and non-EU countries
are treated in the same way and that UK businesses are not disadvantaged by
competition from VAT-free imports”. He further advanced that this also
addresses the problem of international sellers not paying the right amount of
VAT on “sales of goods already in the UK at the point of sale”.
However, as consumer rights experts pointed out, clients are
going to be frustrated if these new VAT
rules cause them significant inconvenience, which seems to be the case right
now.
The VAT rules might cause inconveniences © Royalty-free image
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