Upcoming VAT Changes
There are some big changes coming 1 Jan 2021. Here are some of our musings on the topic.

Online Marketplaces collect VAT on your behalf (sometimes)

...but not always.
If you sell on Amazon for example, you may have seen this notice:
Amazon's notice of handling VAT

Do I still need to file VAT returns?

If you are a non-UK business, then yes. If a UK business, then it depends.
Rephrasing the above into key points as they apply based on where your business is located:
UK Business
Non-UK Business
You need to file if you breach the £85k domestic VAT registration exemption threshold or if you sell goods delivered from inventory stored overseas and worth less than £135.
  1. 1.
    B2C Sales will be zero rated (OMP is responsible for collecting VAT)
  2. 2.
    B2B Sales will be standard rated as usual (OMP is NOT responsible for collecting VAT)
Yes, you need to file, noting that:
  1. 1.
    You will be able to recoup your import VAT and VAT on other fees (e.g. Amazon PPC)
  2. 2.
    B2C Sales will be zero rated (OMP is responsible for collecting VAT)
  3. 3.
    B2B Sales will be standard rated as usual (OMP is NOT responsible for collecting VAT)
Last modified 11mo ago