VAT distance selling rules
Produced in partnership with John Fuszard of Sagars Accountants Ltd
VAT distance selling rules

The following Tax practice note produced in partnership with John Fuszard of Sagars Accountants Ltd provides comprehensive and up to date legal information covering:

  • VAT distance selling rules
  • Overseas businesses selling goods in the UK
  • Cancellation of registration
  • Goods that are excluded from the distance selling rules
  • Dutiable goods
  • UK businesses selling goods overseas
  • Dutiable goods
  • Avoiding VAT registration for distance sales
  • Delivery arranged by customer
  • Failure of an EU business to register for UK VAT under the distance selling rules
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

Distance selling occurs when a VAT registered EU supplier sells and delivers goods to a non-VAT registered customer in another EU country. The customer could be a private individual, or an organisation that is not required to register for VAT such as a charity or public body, or a business that is too small to register or only makes exempt supplies. It is important to note that distance selling can only occur between Member States so mail order sales to customers in countries outside the VAT territory, for instance to the Channel Islands, are not distance sales.

Under the distance selling rules, the supplier is required to VAT register in the EU delivery country once its sales in that country exceed a specified threshold. The distance selling threshold can only be set by Member States at either €35,000 or €100,000. Once the

Popular documents