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

The following Tax guidance 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
  • UK businesses selling goods overseas
  • Avoiding VAT registration for distance sales
  • Failure of an EU business to register for UK VAT under the distance selling rules
  • Failure of a UK business to register for VAT in another EU jurisdiction under the distance selling rules

Brexit: This Practice Note contains information on subjects impacted by the UK’s withdrawal from the EU. The Taxation (Cross-border Trade) Act 2018, and regulations made under that Act, set up a new customs and VAT regime for the UK, to apply once the UK has left the EU. The operative provisions of the Act do not take effect until the implementation period provided for in the European Union (Withdrawal Agreement) Act 2020 comes to an end. For more information, see News Analyses: Post-Brexit customs regime—the Taxation (Cross-border Trade) Act 2018 and EU Withdrawal Agreement and VAT. For more information on the withdrawal agreement and Brexit, see Practice Note: Brexit—introduction to the Withdrawal Agreement and News Analysis: Brexit Bulletin—key updates, research tips and resources. For more on tax and Brexit, see Practice Note: Brexit—UK tax consequences.

FORTHCOMING CHANGE in relation to cross-border e-commerce: With effect from 1 January 2021, a new One Stop Shop (OSS) VAT registration service will be introduced for online sellers of goods in the EU, effectively replacing the existing distance selling rules for intra-EU supplies of goods. There will also be related changes to the rules on the exchange and storage of information in relation to the new OSS. These changes form part of the EU’s VAT Digital Single Market Package and their relevance in the UK