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VAT on postal packets after Brexit

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The government has laid the Value Added Tax (Postal Packets and Amendment) (EU Exit) Regulations, SI 2018/1376, which make overseas suppliers liable for import VAT on postal packets sent to the UK containing goods with a value of £135 or less. These regulations will come into force on a day to be appointed by the Treasury in the event that the UK leaves the EU without a negotiated arrangement.

The regulations set out a scheme for suppliers to register with HMRC and account for import VAT on a three-monthly return. Failure to register will incur a £1,000 penalty and there may be joint and several liability with recipients, postal operators, or online marketplaces in cases of non-compliance. The regulations also remove low-value consignment relief for commercial imports of goods valued at £15 or less.

Issue: 1426
Categories: News , Indirect taxes , VAT