VAT on goods after Brexit

The EU and the UK have come to an agreement on trade matters on the brink of 2021. The exact details of the Brexit deal are not yet known. Check this page regularly to find out what the new rules regarding VAT are.

This article describes what the rules for value added tax (VAT, btw in Dutch) are if you import goods from or export goods to the UK.

VAT on goods during the transition period

These were the rules and procedures governing VAT on goods during the transition period.

Purchasing products in the UK

If you purchase goods from businesses in the UK, the seller will usually charge you 0% VAT. You pay VAT in the Netherlands, by declaring the VAT on your VAT return – on condition that you are an entrepreneur for VAT purposes. The British seller has to demonstrate that the goods have left the country, for instance by producing a freight letter or invoice.

Selling products to the UK

When you sell goods, you send an invoice charging 0% VAT. Both you and your customer must be liable for VAT, and you must put both VAT identification numbers on the invoice. Be sure to check your customer’s VAT number, and produce proof that the goods have left the Netherlands, for instance a freight letter, invoice or order confirmation.
Do you sell products to private individuals? You have to charge the British VAT rate. If you are not sure, you can use the Tax Administration calculation tool (in Dutch), or call a Tax Information Line for advice.

Threshold sums for long-distance sales

Normally, if you sell products to a person or business in another country (in other words, you engage in long-distance sales), you need to register for VAT with the Tax Administration in that country. The EU member states have agreed upon threshold sums, so that if you only make one or two long-distance sales to private individuals, you won’t have to register with the foreign Tax Administration and charge that country’s VAT. For the UK, the threshold sum is €80,197. If the total of your dealings with the UK comes to a higher amount, you have to charge British VAT and register with the British Tax Office.

Goods and VAT with the new trade agreement

Under the new trade agreement, buying and selling products fall under different VAT rules. This section will be updated as soon as details become available.

3 tips

  1. Apply for an EORI number. You need this Customs identification number for international trading.
  2. Read up on Starting to export
  3. Read up on Starting to import

Also see

Brexit Preparedness Notice: European Commission advice on the changes in VAT rules and VAT refunds on the delivery of products and services to the UK.

Information for UK businesses

If your business is located in the UK, you have to deal with the changes from the other side. Consult gov.uk for information. These direct links may point you in the right direction:

InfoPage