Andrew Needham looks at some of the issues around the changes in the e-commerce rules in 2021.
Following Brexit, there have been a number of changes for businesses selling online, either with digital downloads or selling through online marketplaces. From 1 July 2021, the EU will also be introducing a new voluntary system for accounting for VAT on business to customer (‘B2C’) sales of goods valued at less than 150 euros.
Supplies of goods imported into the UK
For B2C sales into the UK, there are two methods of accounting for VAT. For sales over £135, the customer accounts for VAT on the importation before the goods are released into free circulation. For B2C sales comprising imports of goods in consignments not exceeding £135 in value,
