VAT in the UK

VAT in the UK

Brexit has changed business trading between the EU and the United Kingdom.

There are important changes for deliveries in the UK fulfilled by Amazon.

Different rules apply for direct distance sale from the EU, for distance sale via Marketplace and also for deliveries from UK fufillment center.

You do not need any VAT registration in the UK, if you sell directly via your own e-shop to final customers in the UK and the consignement is above 135 GBP. You also do not need to be VAT registered if distance sale is mediated by online Marketplace, but the consignements go directly from the EU country to UK final consumer.

Your business need the UK VAT registration number and UK EORI number if the goods are delivered from UK fulfillment center.

Find more details on VAT registration in the UK.

How to register for VAT in the UK

Once your goods are sold directly from the EU to UK customers (not through an online Marketplace) and its price is below or equal to 135 GBP, or if you use Amazon´s UK Fulfillment center, you need to apply for local VAT ID and EORI.

The UK Tax Authority will issue 9 digit VAT number within 30 days. After having this VAT ID, Taxeedo enrolls your business for Economic Operators Registration and Identification. It will bet he same number as the VAT number, with GB at the beginning and 000 at the end.

Check your UK VAT number
Check your UK EORI number

VAT return deadlines in the UK

Periodical VAT returnes are generally filled and submitted to the 7th day of the second month following the end of the tax period.

This tax period is quarterly. It doesn't have to be a calendar quarter.

The reporting regime MTD (Making Tax Digital) is compulsory for all businesses from April 2022. Till that time only businesses with their UK turnover over 85 000 GBP are concerned.

VAT rates in the UK

In the UK there are 4 different VAT rates:

Reduced 5% VAT applies to

  • Hospitality, holiday accommodation and entry to attractions between 15th July 2020 and 30 September 2021
  • Domestic heat and power
  • Energy saving materials (conditions apply)
  • Qualifying constructions services – property conversions and empty home renovations
  • Mobility aids for the elderly
  • Smoking cessation products
  • Qualifying protective and safety equipment

Reduced 12.5% is a temporary VAT rate for hospitality, holiday accommodation and attractions from 1 October 2021 – 31 March 2022. It applies to:

  • food and non-alcoholic drink sold for on-premises consumption, for example, in restaurants, cafes and pubs
  • hot takeaway food and hot takeaway non-alcoholic drinks
  • sleeping accommodation in hotels & holiday lodging, pitch fees for caravans and tents and “associated facilities”
  • admissions to theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions, and similar facilities (when not covered by the cultural VAT exemption)

Standard 20% Rate VAT applies unless a reduced rate or exemption is available

Also 0% VAT applies to

  • Food and drink products, with some exceptions (see next slide)
  • Exports of goods from the UK
  • Books & other printed matter
  • E-publications since 1 May 2020
  • Qualifying construction works such as building new houses & certain charitable/social need properties
  • Sale of new houses
  • Some supplies by charities
  • Disabled aids and construction
  • Passenger transport
  • N.B.: VAT exemption is different from 0% VAT

VAT payment in the UK

Returns and payments are due one month and 7 days after the quarter end.

If the 7th day is at the weekend, the Friday is the deadline. E.g. the July-September 2021 VAT return is due by Friday 5th November

The VAT is payable by standard SEPA payment to one collection bank account with IBAN GB36BARC20051773152391. Use your VAT ID number as reference (without the letters GB).

Do you have any other question? Visit our FAQ section. If you don´t find what you need, let us know.