Welcome to the July 2021 edition of RPC's [email protected], an update which provides analysis and news from the VAT world relevant to your business.

News

  • The European Commission has published guidance on changes to the VAT rules on cross-border business-to-consumer e-commerce activities, which have applied since 1 July 2021. The rationale for these changes is to overcome the barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments. HMRC has published guidance in relation to the changes in its weekly bulletin, including information about the UK VAT e-commerce systems that have linked to the EU's VAT e-commerce package since 1 July 2021.
  • Under new guidance published by HMRC, if businesses sell low value goods in consignments not exceeding £135 in value into Northern Ireland and are registered for the VAT Import One Stop Shop (IOSS) in the EU, they must inform HMRC of their IOSS registration number. The guidance provides a link to a service which enables businesses to comply with this obligation.