From the 1st January 2021 onwards, the United Kingdom will no longer form part of the European Union. This will obviously bring changes in the Tax regime between the United Kingdom and the European Union that will effect local businesses exporting goods to the UK.
In order to prepare for full border controls on imports from the EU, the UK will introduce 3 key changes in the Tax regime between the United Kingdom and the European Union.
Mandatory to provide electronic customs data
Businesses sending packages to the United Kingdom and to all non-EU Countries will be required to provide mandatory data to be used for transport security and customs clearance purposes.
The Low Value Consignment Relief will be removed on commercial goods
This relief will be withdrawn from 1 January 2021 once the Brexit transitional period ends, meaning ending the current £15 VAT exemption thresholds, known as Low-Value Consignment Stock relief.
A new VAT scheme will apply for commercial items valued between £0 and £135
A new VAT scheme will apply for commercial items valued between £0 and £135 where esellers or the selling platform must pay VAT direct to UK. Therefore, local esellers are to register with the UK Government for an EORI (Economic Operator Registration Identification) number.
For more information please read BREXIT GUIDELINES FOR LOCAL BUSINESSES.
The new regulations are mostly associated with customs, however postal operates play a major role to ensure a smooth process. If you require more information about the new regulations, please contact Mr Adrian Vassallo – MaltaPost’s Chief Operational Officer at firstname.lastname@example.org
If you need information about MaltaPost’s eSeller service (a platform a harmonised system that facilities the process of logistics, both locally and worldwide, please contact Mr Charles Cilia - MaltaPost's Head of Logistics and Ecommerce at email@example.com