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Zayar Tax Advisor
Zayar Tax Advisor, Tax Consultant
Category: Tax
Satisfied Customers: 2
Experience:  Over 10 years as Tax Advisor for Individuals and Businesses
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We are a small family business from Greece. We focus on

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Hello,We are a small family business from Greece. We focus on olive farming and olive oil production. Our olive oil brand (1 SKU - 500ml glass bottle of Organic EVOO) is sold through our website (https://www.myrolion.gr), directly to UK-based customers.Recently the following article was published by the British government, regarding Brexit related changes:https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021The article states the following:- For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), we will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.- For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC.In the meantime, starting 2021, we want to start fulfilling eCommerce orders locally, through a UK-based fulfillment provider (just a warehouse that sends orders to customers).However, our fulfillment partner informed us that since the product we sell has a 0% sales tax (as most food products), we only need a tax exemption certificate.The question is: Do we have to register (and pay corporate tax on profits) starting on 1/2021? Or we can still proceed with a tax exemption certificate since we only sell 0% rated goods? It is very important to know this, as the corporate tax can break our profit margin.Thank you for your time.Kind regards,
Athanasios
JA: Have you talked to a financial professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No
Hello,

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Thank you!

Hi, if you only make zero rated supplies, you may not need to register for VAT. You can apply for exemption from VAT registration with HM Revenue & Customs.

Zayar Tax Advisor, Tax Consultant
Category: Tax
Satisfied Customers: 2
Experience: Over 10 years as Tax Advisor for Individuals and Businesses
Zayar Tax Advisor and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Hi Zayar, thank you for the information. How can I apply for VAT exemption online? Thank you for your time.
Customer: replied 1 year ago.
Also if I register for VAT to account for UK-based expenses, will I also pay corporate tax on profits? Or will I not pay corporate tax for zero-rated products?