Shipments of goods with a value not exceeding GBP 135
In comparison to goods over 135 GBP, a wider range of rules applies to shipments of goods with a total value of no more than GBP 135. The current low value exemption of GBP 15 will no longer apply so that in principle every shipment is taxed with VAT.
It is important that in this case no import VAT is charged.
An exemption applies for this. Instead, the supply to the UK customer is taxed with VAT. This VAT is payable by the foreign supplier. A European entrepreneur who sends a shipment to the UK with a value below GBP 135 must therefore in principle register for VAT in the UK.
There are two exceptions to this rule:An online marketplace (OMP) is involved in facilitating the sale of goods (view our BREXIT article about online marketplaces)The buyer is a VAT registered entrepreneur who provides his UK VAT number
B2C sales under GBP 135
For direct sales by a non-UK business to a UK private individual, the foreign business is responsible for collecting and paying UK VAT.
The effect of these new rules is that any non-UK “direct seller” (ie one who sells goods directly to UK customers) who sells goods in the UK and who is outside the UK at the time of sale is in the UK for must register for VAT.
Foreign entrepreneurs who sell goods and which are already in the UK at the time of sale are already subject to VAT in the UK under current rules. This will not change after the end of the Brexit transition period.