EU VAT Reform
General VAT
Retrospective registration
Reverse charge

10 tips for e-commerce – get ready for Brexit

By / In UK VAT / 4 Min read

As the transition period for Brexit ends on 31st December 2020, all e-commerce traders will need to consider actions before they move goods. Here some tips for you to take into account:

For companies located in the UK


For companies who use warehouse in the EU, for example, Amazon FBA or another warehouse:

  • Get EU EORI number, because your UK EORI will no longer work for EU import.


For UK businesses without warehouses outside the UK:

  • If you plan to send orders from your UK warehouse then you will need, as from 1st July, to register as a VAT payer for all your goods which are cheaper than 150 EUR. Otherwise, your buyer will need to go through a very complicated Customs clearance procedure. This is because from January 2021 low-value goods are VAT taxable when imported by post. The threshold will be zero for imports. That means that if you send an order which is 2 euro you still need to calculate and pay VAT as a supplier.  LOVAT’s platform will help you to fill in a customs declaration. With this scheme, VAT will be due not at Customs, but at the end of the month of import.
  • If you have EU VAT registration, in some countries you will need to appoint a VAT representative. This is the case in Italy, for example.

For EU business that want to continue selling in the UK


If you use a warehouse in the UK (for example Amazon FBA warehouse):

  • Get a GB EORI number, because you cannot use EU EORI for your customs clearance anymore.


If you don’t use warehouse in the UK and send parcels directly from EU:

  • Get a UK VAT number to use a simplified scheme. This registration is voluntary, but as the import threshold will be removed- it will become too complicated for buyers to order goods from your shop if you don’t use this scheme.
  • Apply for a simplified declaration. Submit Monthly Postponed Import VAT Statement (MPIVS). You can use LOVAT to do it.
  • Find a commodity code to classify your goods. To be able to use reports at the LOVAT platform, you need to update all commodity codes for your goods by 1 of January 2021.


For those who sell services and was registered for MOSS in the UK

  • You need to choose a country to register for MOSS in the EU. We can help you to choose a country.


For those who sell goods B2B

  • The reverse charge mechanism will be applied (as it is now) if the buyer has a UK VAT number.


*In this article GB or Great Britain i.e. the United Kingdom except for Northern Ireland

** This article doesn’t cover Goods with specific Customs Requirements, for example, excise goods or gifts