UK Spring Budget 2017 – VAT Implications

March 9, 2017 in Amazon, Distance Sales, Fulfilment By Amazon, International VAT, VAT

The UK Chancellor delivered his Spring Budget yesterday.  Affecting online sellers are the following:

UK Established Companies

  • VAT Registration and deregistration thresholds – From 1 April 2017 the VAT registration threshold will increase from £83,000 to £85,000 and the deregistration threshold from £81,000 to £83,000.   This means, from April 1st 2017, if you are a UK established business you will not have to VAT register until your turnover reaches £85,000 in a rolling 12 month period.

 

Overseas Sellers UK VAT Fraud Counter-Measures

  • ‘Split Payment’ model – In the next step in tackling the non-payment of VAT by some overseas traders selling goods online to UK consumers and building on the measures introduced in Budget 2016, the government will shortly publish a call for evidence on the case for a new VAT collection mechanism for online sales. This would harness technology to allow VAT to be extracted directly by the Exchequer from online transactions at the point of purchase.

 

Recent posts

July 26, 2022
NFTs and VAT: Are Non-Fungible Tokens Taxable? 
Read More
July 14, 2022
SME Scheme Update: New EU VAT Compliance Rules
Read More
June 24, 2022
Cash Flow Management: Top Tips in 2022
Read More

Not sure where to begin?

Schedule a call with one of our VAT experts today