Your professional business partner in UK

If you do business in the UK or plan to do it in future, you should contact TIMEVAT for advice and assistance. We are familiar with the challenges and have easy access to the local authorities and know the procedures and requirements. Contact TIMEVAT by mail or phone today.

As of 1st January 2021, UK is no longer part of the EU inner market. After Brexit UK is now considered being a 3. country vs. EU. The UK Brexit entails several changes in the handling of VAT and duty within ecommerce based on type of customers like, consumers, business, or online marketplaces.

A company or webshop outside UK selling to British consumers must observe the new British VAT laws and procedures. The company especially needs to observe the £135 threshold. Goods not exceeding £135 which are sold to British consumers are subject to UK supply VAT at the sales point. Also, where the goods are located at the selling point will impact the invoicing and handling of VAT.

In addition to the £ 135 threshold it is also important to observe when ecommerce takes place through a webshop or through an online marketplace (ie. Amazon).

The Brexit agreement secures duty free passage between EU and UK for goods originating from on of the areas. To trade duty free the company or webshop must documentation proving country of origin.

Goods originating from 3. countries like China, India etc. will be added duty. This type of goods is subject to the trade agreements made by these countries of origination. Companies having comprehensive export to UK should investigate customs warehouse or other similar solutions, which can lighten the duty costs when importing goods to EU that will be re-exported to UK afterwards.

TIMEVAT has considerable knowhow and experience in advising and assisting Danish companies with VAT solutions to maintain and grow markets outside EU.

TIMEVAT assist companies in the application of VAT number and EORI number. We also apply for customs credit if wanted and make your periodic reporting of VAT.

Contact TIMEVAT for advice and assistance with you VAT challenges in the UK market after Brexit.

VAT Rates, Formats & Thresholds

VAT RatesVAT DesignationVAT Number FormatDistance Selling ThresholdIntrastat Threshold
20%(StandardVATUK123456789£ 70,000£ 500,000(Arrivals)
0/5%(Reduced)£ 250,000(Dispatches)

VAT return periods
Monthly or quarterly

Annual returns

Other reporting requirements

Fiscal repræsentation
The tax authority may require the appointment of a tax representative where the business is established in a non-EU country with no mutual assistance arrangements with the UK.

In the new UK VAT model, you must distinguish between:

* Is the consignment exceeding £ 135?
* Are the goods located inside or outside UK at the point of sales?
* Who are you selling to: B2C, B2B or via online marketplaces (OMP)?

UK VAT apply to sales of goods to UK customers (B2C) where the consignment does not exceed £ 135 in value. VAT will be accounted for at the point of sale.

Specifically, this means that Danish webshops selling goods at a value not exceeding £ 135 must:

* Be registered for UK VAT
* Invoice UK VAT for 20% at point of sale
* Handle import of goods at UK border and deliver DDP to customer

The Low Value Consignment Relief which relieves the import VAT on consignments of goods valued at £ 15 or less will be abolished. Consequently, all goods must be custom cleared at the UK border. For consignments not exceeding the value of £ 135 will be duty free. The value of £ 135 is based on the intrinsic value of the goods, which equates to the sales price excluding transport, insurance and taxes. The £ 135 threshold applies to the value of the consignment, not to each individual item within the consignment.

This arrangement does not apply for goods subject to an excise duty.

If the value of the consignment exceeds £ 135 the VAT treatment will depend on agreed terms of delivery.

If the Danish company choose to import the consignment to UK this will require an importer registration (UK EORI) and a VAT registration. If the Danish company does not have these registrations in place using other terms of delivery can also switch the handling of VAT and duty to the British customers or the freight forwarder.

For goods located outside UK and sold via OMP it is the responsibility of the OMP that facilitates the sales of goods to UK customers to register for UK VAT and account for VAT to HMRC. In this case the Danish company will not have to register for UK VAT.

For business to business sales (B2B) where goods are outside the UK at the point of sale and the supply is to a UK VAT registered business the new arrangements will also apply.

It is important that companies before doing business in UK seek advice and consider their legal obligations. It is highly recommended that you get registered before doing taxable and VAT liable transactions.