VAT ON EXPORTS TO THE EU
Following Brexit, and the UK’s withdrawal from the EU Single Market, exports to customers located in the EU is zero rated provided that the appropriate evidence to support the removal of the goods from the UK is maintained.
For exports to VAT registered businesses in the EU, the Incoterms will determine whether you have any VAT obligations in the EU, and in most cases, we would recommend that Delivered Duty Paid (DDP) Incoterms are avoided. For exports to private individuals, registration under the EU’s Import One Stop Shop (IOSS) or Union One Stop Shop (OSS) may be necessary. We’ll advise you on the VAT record-keeping requirements and registration obligations arising from your trade with the EU.
Although the EU/UK Trade and Cooperation Agreement removed any tariffs for goods of UK origin being imported into the EU; where goods have been sourced from other jurisdictions, you or your customer may also need to pay import duty before the EU customs authorities will release the goods.