VAT: B2C sales in UK from 2021

HMRC has updated its guidance Changes to VAT treatment of overseas goods sold to customers from 1 January 2021 to cover further requirements for online marketplaces (OMPs) or direct sellers from 1 January 2021. The changes include:

• a requirement to include a reference to ‘reverse charge’ on invoices where a direct seller or OMP is selling to a business customer in the UK;
• clarification that the new rules will apply to sales that have a time of supply for VAT purposes of 1 January 2021 or later; and
• requirements (for OMPs and direct sellers) to register for UK VAT from 1 January 2021.