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EU VAT changes 1 July 2021 - IOSS

You may be aware that the VAT rules changed 1st July for trading with the EU. Previously small orders, with a value of €22 could be processed VAT free (after Brexit) but now ALL orders with a value of less than €150 have to be charged at the VAT rate applicable in the destination country (I have just checked and the 27 states operate 10 different standard VAT rates!).

The VAT charged, and collected, has to be paid on a monthly basis to the EU through your nominated agent. It follows, therefore, that these transactions need to be excluded from our normal HMRC VAT return.

I presume that QF are aware of this and how will it be covered?

Hi @manleyc

Are you invoicing your clients directly from QuickFile? Typically the invoice would just be entered as Out of Scope on QuickFile as IOSS would be handled by your e-commerce platform or the shipping partners.

If you’re not registered for IOSS, you would just mark the invoice as Out of Scope as the VAT will be paid by the client before delivery (handled by your shipping partner, for example).

It may be worth speaking with your accountant to be sure this is handled correctly.

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