The UK exited the EU VAT regime, Customs Union and Single Market from 1 January 2021. This means the loss of a range of compliance simplifications and the imposition of customs declarations, goods regulations, services and import VAT.
In this article HERE you can find an outline of the major changes affecting VAT treatment after the UK leaving the EU.
Here you can find the most recent guidance from the government; Import goods into the UK: step by step
If you import goods into Great Britain from outside the UK or from outside the EU to Northern Ireland you may have to pay import VAT on goods. For supplies of services from outside the UK you must account for VAT under the reverse charge procedure.
If you supply digital services to private consumers you can read the guidance here – VAT rules for supplies of digital services to consumers
CIS VAT changes
If you’re in the construction sector changes on VAT are coming on 1st March 2021.
VAT reverse charge technical guide HERE.
VAT is due when a VAT invoice is issued, or payment is received, whichever is earlier.
For invoices issued for specified supplies that become liable to the reverse charge, the VAT treatment for invoices with a tax point:
- before 1 March 2021 – the normal VAT rules will apply and you should charge VAT at the appropriate rate on your supplies
- on or after 1 March 2021 – the domestic reverse charge will apply