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EU VAT changes What You Should Know

Future Formations aims to help businesses in every way possible. Hence, we make sure to bring you the latest news that may impact the way your business currently operates. Do make to give this article a thorough go through and determine whether or not your business will be impacted in any way and if it is being impacted how can you manage it.

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EU VAT changes What You Should Know

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  1. EU VAT CHANGES: WHAT YOU SHOULD KNOW WWW.FUTUREFORMATIONS.CO.UK

  2. RULES AROUND PAYING VAT BEFORE 1ST JULY 2021 Here are the rules around paying VAT before 1st July 2021. Follow the distance selling threshold - this is when enterprises selling to EU member states outside the EU must register and pay VAT when their turnover reaches a specific amount, which varies by nation. When offering digital services to EU member states, use the MOSS. Selling physical goods worth more than £15 necessitates VAT registration in each EU member state where the goods are sold.

  3. RULES AROUND PAYING VAT AFTER 1ST JULY 2021 Here are the rules around paying VAT after 1st July 2021 By extending the MOSS to encompass all services and items sold by enterprises outside the EU to EU consumers, multiple VAT registrations are no longer required. Using a global selling threshold of 10,000 euros rather than the country-specific distance selling requirement. If the seller declares and pays the VAT at the moment of sale using the OSS, they will be exempt from VAT on items sold to EU consumers up to the amount of £135.

  4. HOW WILL THE CHANGES IMPACT UK BUSINESSES? Well, there is no doubt that the changes mentioned above will have some effects on UK businesses. So, let’s take a close look at what type of changes are predicted; First of all, it does not apply to companies with a fixed address in the European Union. There is no need to register for VAT in more than one country. To make quarterly VAT payments, register as a "non-union taxpayer" on the OSS returns. According to the EU, this may cost up to £6,900 per year.

  5. HOW TO PREPARE YOUR BUSINESS FOR THE CHANGES Well, in order to prepare your business for the VAT changes, we recommend you take a look at the below checklist. Confirm whether aspects of your company are affected by the new EU VAT regulations. Examine your VAT accounting requirements for the EU: To identify and apply the right VAT rates in different countries, systems and master data modifications are likely to be required. If you wish to use a single registration to pay VAT throughout the EU for B2C shipments consider signing up for the IOSS platform. If you do not have an EU-based firm and want to register for IOSS, you may need to hire an intermediary to handle your tax compliance in the EU. If you want to replace your existing overseas EU VAT registrations with a single IOSS registration, review and cancel them. Make any changes to your shipping system and procedures that are required. If you intend to pass on import fees to your consignee, make sure you let them know ahead of time.

  6. CONCLUSION Future Formations aims to help businesses in every way possible. Hence, we make sure to bring you the latest news that may impact the way your business currently operates. Do make to give this article a thorough go through and determine whether or not your business will be impacted in any way and if it is being impacted how can you manage it. HRMC is having to assist UK companies and also have webinars going through import and export rules. For more information check out their website. https://www.futureformations.co.uk

  7. CONTACT US: Future Formations Ltd 4 Cochrane House Admirals Way, Canary Wharf London E14 9UD +442077818033 support@futureformations.co.uk www.futureformations.co.uk

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