Schemes create one stop shop for VAT on EU trade

8th July 2021 | News

Three schemes were launched on 1 July to deal with VAT on business-to-consumer supplies of goods and services to EU customers.

They are known as the ‘Union’, ‘non-Union’ and ‘import’ schemes. The schemes are designed to facilitate the collection of VAT by one EU member state, which is then passed on to the member state in which the supply is deemed to take place.

The ‘Union scheme’ covers intra-EU supplies of goods and services for businesses with their place of business or a fixed establishment within the EU.

The Union scheme will also allow a UK business to hold stock within the EU (for example, the Netherlands) and pay VAT for all EU sales to the relevant tax authorities.

The ‘non-Union scheme’ covers supplies of services to EU customers by businesses with no establishment within the EU.

The ‘import scheme’ covers the distance sale of goods below €150 fulfilled from stock held outside the EU.

If businesses register for VAT using one of these schemes, they will complete one return for all EU sales, rather than being required to register for VAT in all member states in which their customers are based. These schemes will allow businesses to declare sales across all EU member states.

Internet link: Guide to the one stop shop

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association

News

Employment Allowance increased as of April 2022

In the Spring Statement in March, Chancellor Rishi Sunak introduced several new measures to help the public combat the current cost-of-living crisis. One of these measures was the boost to Employment Allowance for UK families and businesses. What is Employment...

Trust Registration – Registrable Express Trusts

UK express trusts and some non-UK trusts in existence on or after 6th October 2020 must be registered with the UK Trust Registration Service (TRS) by 1st September 2022.  On 6th October 2020, as part of the UK’s implementation of the Fifth Money Laundering Directive...

Contact

0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211