UK VAT on eCommerce Legislation

The UK is due to formally exit the EU’s Single Market and Customs Union on 1st January 2021 (“Brexit”). From this date, the UK is expected to introduce a new set of VAT rules which may change the way that VAT is accounted for on our sales to UK customers.

From 1st January 2021, we, as a registered UK VAT business entity will be responsible for charging UK VAT (20%) on the following sales of goods delivered to customers in the UK where ordered through any our storefront:

  1. Goods delivered from inventory stored outside the UK with a shipment value of up to £135; and
  2. Goods delivered from inventory stored in the UK, irrespective of value, where we, the seller, are not established in the UK.

Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from 1st January 2021 – UK VAT will be calculated and collected  on these sales irrespective of their value.

Further information on this law is available from the UK Tax Authorities here.