UK Customers and VAT - 1st January 2021
Purchasing from the UK? - How this change affects you
From 1st January 2021, all imports to the UK from the EU will have VAT deducted.
As a small business based in France I am not liable to pay VAT, however, from 1st January 2021, all sales to the UK require me to register and set up a UK VAT Account with the UK Tax Authorities.
This meas in simple terms l will have to by Law, charge UK customers an additional 20%, plus declare, and then reclaim that VAT with the UK Government.
Due to French business regulations currently in place, I will also pay National Insurance on the whole amount of this sale plus VAT, equating to an additional increase of approximately 33% on the sale price of the item.
This rise in price does not factor in time spent on administration costs, which would be in addition.
Due to the increased administration and price increase, it will no longer be viable for me to sell my Dizzy & Co Designs products to new and existing customers in the UK.
For further information, please see the UK Government Information Link: