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.

News

The rise of fraud during the COVID-19 Pandemic

During the COVID-19 Pandemic, the UK Government introduced many schemes to help people and businesses weather the storm caused by the lockdown restrictions. An unpleasant side effect of this government support has been considerably more opportunities for fraudsters to...

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