GOODS costing £135 or less that are exported to UK consumers will now be subject to VAT charges – a significant change that is likely to catch many businesses out, UHY Hacker Young has warned.
Speaking at the accountancy firm’s Brexit VAT and Customs webinar – which took place on Wednesday, 27 January and was attended by 260 people – Sean Glancy, VAT and indirect taxes partner at UHY, said the change was “counter-intuitive” and has gone under the radar.
He said: “Non-UK businesses must now register for UK VAT if they sell goods B2C and the customer is based in the UK. This requirement applies to consignments under £135 in value and there is no registration threshold. This is counter-intuitive and not something you would expect; you would think this charge would be placed on goods costing more than £135.