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Expert Lu
Expert Lu, Business Consultant
Category: Business
Satisfied Customers: 236
Experience:  ACCA Diploma
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UK business who sells online clothing should charge vat on

Customer Question

UK business who sells online clothing should charge vat on online sales to Europe/ rest of the world?
how is the vat accounted? do they have to do anything extra after brexit?the business import their goods from singapore and have a warehouse in Leicester UK.
Submitted: 15 days ago.
Category: Business
Expert:  Expert Lu replied 15 days ago.

Hello

I am an expert with JustAnswer and I am happy to assist you with your question.

I am currently reviewing your question and I will get back to you.

Thank you in advance

Customer: replied 15 days ago.
Thank you
Expert:  Expert Lu replied 15 days ago.

Hello

Thank you for  your patience, after reviewing  your question, If goods sold online are shipped from the UK, whether to customers in the EU or non-EU countries, they will be treated as exports from the UK and will be zero-rated for VAT purposes (you will need to retain evidence). That means UK VAT is not charged at the point of  sell.

Please  kindly feel free to ask if you  need me to clarify my answer.

All the best.

Expert Lu

Customer: replied 14 days ago.
Thank you very much for your answer, how can this be reported to hmrc, do I have to submitt the one stop shop cliam alongside the vat return?From July 2021, B2C sellers dispatching their goods from a single country will no longer be required to register for foreign VAT and complete multiple VAT filings in countries where they are selling. Instead, they may opt to simply complete and file a new OSS filing alongside their regular domestic VAT return that will list all their pan-EU sales. The seller then remits the VAT due to their home VAT authority, which then forwards the taxes to the appropriate countries. Non-EU sellers may also apply to use the OSS regime, and just need to nominate any single EU state to register and file in. The 2021 EU VAT e-commerce package was delayed, including this reform, until 1 July 2021 and the original plan had been for 1 January 2021.please advise
Expert:  Expert Lu replied 14 days ago.

Hello you would need to simply complete and file a new OSS filing alongside their regular domestic VAT return that will list all their pan-EU sale.