VAT and overseas goods sold directly to customers in the UK
Overseas businesses who sell directly to UK customers are now required to collect Value Added Tax (VAT) at the point of sale as opposed to point of importation for transactions of £135 and under. While this received most significant coverage as a post Brexit change, impacting small businesses in Europe and their willingness to deliver to the UK, it has implications for overseas companies selling direct to UK customers. Our partners at the Department for International Trade highlight important points and flag a few websites with information from the UK Government about the change in rules that took effect on January 1, 2021. While general VAT registration guidelines reference an annual revenue threshold before needing to apply, that stipulation is for UK companies. If you are an overseas company, there is no threshold. See below information and click through links for details.
Description of when you need to register for VAT (About half way down the page there is a clarification regarding businesses outside the UK: there’s no threshold if neither you nor your business is based in the UK. You must register as soon as you supply any goods and services to the UK, or if you expect to in the next 30 days).