e-commerce VAT in 2021 | How it Will Work

If you are a UK based e-commerce retailer and are selling goods online B2C, that is to individual customers either in the UK, European Union (EU) or the Rest Of World (ROW), then no doubt registering for and charging e-commerce VAT is something you have thought about. Accounting & Tax Academy Free Membership Site → 🌏 http://aidhanfinancial.com/accounting... ⏱️ Time Stamps: 0:46 - VAT overview for e-commerce and scope of video 1:35 - VAT for UK based e-commerce retailers in 2021 and beyond (with numerical examples) 4:01 - What is Destination VAT? If you want my & my team's expert accounting and tax help, you can book a discovery call through our website → 🌏 https://www.aidhanfinancial.com/ The VAT world is split into 3 geographies, the UK, the European Union (EU) and Rest of World (ROW) From the 1st January 2021, post Brexit, all sales by UK based businesses to customers in the EU and ROW will be classified as zero rated export of goods. We have illustrated this point for e-commerce VAT in the video with actual examples. Destination VAT, is simply VAT levied in the destination country of the customer and goods being sold. And it only applies to sale of goods to EU member state customers. It's based on the destination principle, a concept of international taxation which allows for VAT to be retained by the country where the taxed product is being sold. From the 1st July 2021 destination VAT will be due on all online sales into the EU. The current distance selling limits for EU suppliers will be scrapped. Destination VAT can be reported and paid in a simpler way via the new OSS, ones stop shop VAT return without the need for a UK business to register for VAT in multiple EU states. It is anticipated that you as a UK based e-commerce retailer will be able to register for OSS in a member state of your choice. ★☆★ OUR MISSION ★☆★ Me & my team are dedicated to helping and empowering YOU to 'Know Your Numbers' so you can make calculated and informed decisions in your business, company and personal finances towards your definition of success. ★☆★ OUR PHILOSOPHY ★☆★ If you take care of your numbers (finances), your numbers will take care of you, your family and those you value the most. 🔴 DISCLAIMER Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement. #ecommerce VAT #ecommerce #tax and customs