From the beginning of 2020 until now, the COVID-19 epidemic has swept the world, and everyone’s attention has been attracted by the epidemic situation. The epidemic has severely hit all walks of life, especially cross-border e-commerce. In fact, there is another impact on the European station of cross-border e-commerce that many people may not pay attention to in time, that is, on January 31, 2020, the United Kingdom will officially leave the European Union. Cross-border e-commerce businesses conducting business in the European station need to focus on this point. . In the past, there was a certain correlation between VAT among EU member states. Now that the UK has left the EU, will goods imported into the UK still have to pay VAT? Let’s analyze it together today.
This needs to be discussed in several situations and cannot be generalized.
First, if the goods are exported to the UK, VAT must be paid.
No matter where the goods are purchased from, VAT must be paid as soon as they enter British Customs. Because products entering the UK will directly affect the competition of similar products in the UK. Since imported goods cannot be restricted in terms of quality or functionality, the price of imported goods can only be increased by adding VAT, thereby enhancing the competitiveness of British goods in terms of price. For cross-border e-commerce, globally traded goods may be very advantageous in terms of price, but your prices should include these taxes and truthfully inform buyers of them to avoid unnecessary misunderstandings.
Second, if you import goods from the UK to other countries, you may need to pay VAT.
The reason why it is possible here is that VAT is a tax system of the European Union. The United Kingdom used to belong to the European Union. This tax is recognized by EU countries, and sellers do not need to pay additional taxes. Since the UK has successfully left the EU, VAT must be paid if goods are imported from the UK to EU countries. However, if goods are imported from the UK to other non-EU countries, this VAT tax system does not exist. However, you still need to pay certain taxes according to the tax regulations of other countries. For example, when imported goods enter our country, although they do not need to pay VAT, they must pay corresponding taxes in accordance with our country’s regulations.
In summary, all goods imported into the UK, as well as goods imported from the UK but exported to EU countries, are subject to VAT. Goods imported from the UK and exported to other non-EU countries must pay taxes according to the tax system of the corresponding country.