Today, it’s not uncommon to find retailers, wholesalers and distributors using a variety of different sales channels to ensure all possible routes to market are covered. With VAT being a tax on transactions, it’s important for those in retail to concentrate on it.
Most goods delivered in the UK will be subject to a standard rate of VAT, but businesses making sales to overseas customers (e.g., via marketplaces such as Amazon) and who use overseas warehouses face a complex matrix of VAT implications. The increasing application of tariffs plus beneficial de-minimis limits being removed, only adds to the complexity and challenges.
Subsequently, having a good knowledge of your supply chain, so it’s possible to know the VAT due on a sale, alongside robust transactional data to capture that, is a must have. This allows you to understand how to account for the VAT (OSS, IOSS, local registrations) and manage potential costs, such as import VAT and duties.
Crowe helps both UK and international businesses (including those selling into the UK) get their obligations right.