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AMAZON & BREXIT: UK sellers clarifications on new eCommerce legislation for 2021

Oct 23, 2020 | VAT Updates

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Amazon UK after BREXIT. Which sellers are affected by the new changes?

Amazon has released on seller central further clarifications on who is affected by the changes that will take place after 2021 and urges all sellers to prepare for these changes.

More specifically UK sellers that are affected by the new legislation are:

  • Businesses who deliver goods to UK customers from outside the UK and
  • Businesses who deliver goods to UK customers from inventory stored in the UK but are not UK VAT registered and they are established outside the UK.

What is expected from the new VAT rules?

The rules differ if you are selling B2C or B2B

B2C:

If your company is delivering goods to customers who are not registered for UK VAT then it depends where your products are coming from:

  • For products stored outside the UK the exemption for sales of goods under 15£ is going away and you are now subject to UK VAT which will be collected and remitted by Amazon up to sales of 135£. If the value is more than 135£ then it is up to the seller to collect and remit VAT and import duties.
  • For products stored within the UK but your company is established outside the UK then Amazon will collect and remit UK VAT for these sales.

 B2B:

If your company is delivering goods to customers who are registered for UK VAT then if your products are stored outside the UK

the 15£ exemption once again is going away and you are now subject to UK VAT. The difference is that Amazon is not required to collect and remit VAT on these products unless the value exceeds 135£. In this case the B2B customer will have to calculate and remit VAT.

Global VAT Compliance can help you with all your VAT obligations before and after BREXIT. Please click here to contact us and very soon one of our VAT experts will get in touch with you to assess your VAT compliance requirements.

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