UK VAT Rules from January 1st 2021
There are changes in tax and customs procedures in the UK due to Brexit. Please learn the information below if you sell the products to the UK customers directly from any third country or from the storage facilities in the UK.
Since January 1st 2021 the UK tax and customs authorities started following the new rules for selling goods to the UK customers:
£15 value threshold will be abolished.
Joom will be obliged to pay VAT to the UK tax authorities directly for the following sales made by the merchants on the platform:
- For the consignments with the value not exceeding £135 if such consignments are imported to the UK from third countries. As of now, such consignments are subject to the import VAT. Instead of payment of the import VAT, Joom will be obliged to account for VAT in its VAT returns.
- For the consignments of any value sold to the UK customers by non-UK merchants, if at the point of sale (i.e. the moment of the payment for the order by the customer) products are already located at the territory of the UK (i.e. at your local warehouse or the facilities of any fulfillment operator).
In the above two cases, Joom will be responsible for accounting and collecting the VAT. You will not be required to remit these amounts to the UK tax authorities and shall not issue invoices for such consignments, as Joom will prepare and issue invoices by itself.
- Joom will keep all the information related to the sales made on the platform and will provide the UK tax authorities with such information upon their request. We remind you of the importance of provision Joom with valid, true, and actual information, including the data related to you, the "shipment from" place, and the ownership over the goods that are already located in the UK.
We will continue to adjust all the processes that may affect the correct execution of our VAT and record-keeping obligations and will follow up you on further changes and implications they may have on you shortly after their introduction.
Please find more information on the changes coming to force on 1 January 2021 on the official sources of the UK Government.
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