VAT Brexit Changes – All You Need To Know

VAT Brexit Changes

 

VAT On Low Value Imports

Several VAT changes for businesses that import and export goods were announced from January 1st 2021. It comes as rules that permit free movement of goods and people between the UK and the EU cease to apply from 11pm as of December 31st 2020.

All goods entering UK must be subject to VAT (different rules will apply for Northern Ireland). You should talk to your suppliers and find out which of these routes they will take:

• Sell without VAT added as a business to business transaction – you will need to provide your VAT number but must account for the VAT due as a reverse charge in your own VAT records.
• Register for VAT in the UK and charge UK VAT on all UK sales from 2021.
• Sell through an online marketplace which is registered for VAT in the UK, charging for VAT on the sale and issuing a sales invoice.

If your business purchases low value goods from abroad which cost less than £135 per parcel you need to factor in the cost of UK VAT from 2021. Currently many low value goods enter the UK with no VAT or duty paid, as they are not declared by overseas sellers.

VAT On International Services

The rate of VAT on services supplied to non-business customers in other EU countries normally depends on where the supplier is located. For services related to land, this will be where the land is located.

A UK-based business supplying services to individuals in other EU countries will currently charge UK VAT. However, services supplied now from a UK business to individuals in EU countries will not be subject to UK VAT. Many professional and legal services, including advertising and data processing, will be treated as outside the scope of VAT, meaning no VAT will be applied.

Services supplied between businesses across international borders have been treated as outside the scope of VAT for many years. The customer usually has to prove they are a business by supplying their VAT number. Your EU suppliers may wish to charge VAT to your business from 2021 as they may not accept your UK-issued VAT number as valid. Your UK VAT number will remain acceptable proof of your business status so it’s important to reiterate this and not be stung by any additional charges.

Refunds Of VAT On Overseas Expenses

Before the pandemic, any of us could travel freely to Europe to meet customers, vendors or even attend trade shows, but unfortunately this has now changed. HMRC’s VAT service cannot be used to reclaim overseas VAT incurred after December 31st 2020, as the UK will no longer be treated as an EU country.

UK-based businesses will have to reclaim VAT paid in EU countries by submitting claims directly to the tax authority of the relevant country. These claims normally need to be submitted on paper and in the country’s own language. Each EU country has its own refund claim deadline.

VAT on business expenses incurred in another EU country up to December 31st 2020 can be reclaimed through HMRC’s online VAT service. Such claims need to be submitted to HMRC by 11pm on March 31st 2021. Previous refund claims can also be viewed and amended until this date.

We hope this has outlined and informed you of the VAT Brexit changes and whether or not you will be affected. If you require any more information on the how Brexit may affect your business or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.

 
Beyond Accountancy

At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.

Nordens Strategic

Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.

Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.

Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews

<
Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

Read more reviews on Trust Pilot

Jamie Brown

Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

Read more reviews on Trust Pilot

Simon Rose

Director - Rose Opticians

I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

Read more reviews on Trust Pilot

Rebecca Bossick

Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

Read more reviews on Trust Pilot

James Aconley

Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

Read more reviews on Trust Pilot

Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

Read more reviews on Trust Pilot

Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

Read more reviews on Trust Pilot

Tony Charles

Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

Read more reviews on Trust Pilot

Peter Horlock

Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

Read more reviews on Trust Pilot

Simon Cushing

Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

Read more reviews on Trust Pilot

Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

Read more reviews on Trust Pilot

James Robinson

Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

Read more reviews on Trust Pilot

>
Latest News

We've always got our ears to the ground when it comes to interesting, useful and topical information relating to business and accountancy.

An Employer Payroll Checklist…
With the end of the tax year sweeping us by, it’s more important than ever to make sure your financial and tax affairs are in order. The previous year has seen businesses struggle with the severity of the pandemic and lockdown ...
Inheritance Tax Planning –…
Inheritance Tax (IHT) is a touchy subject for many families and individuals. Once a person passes away who owns a large sum of estate, then that estate will be taxed by the government in order to redistribute back out to the st...
Nordens TV

We love making videos that break down convoluted accountancy jargon into plain-talking, actionable and accessible facts.

Live Webinar – Time…
Watch our latest LIVE webinar titled ‘Time To Revive' that was held on Wednesday 3rd February 2021 at 4pm GMT hosted by our CEO Mitch Hahn. Last year was tough for all of us. Now is the time to see what 2021 brings and how we c...
Our Christmas Message To…
Merry Christmas to all!   Here we have Mitch Hahn, CEO of Nordens Chartered Accountants delivering our Christmas message to you. Click the video link or read the full transcript below.   As we enter the ho...
  Why I Founded Nordens
Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

Mark Norden Signature

Mark Norden
Founder

We're Professionally Certified

Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!