Need some help! I have been seeing the following pop up message displaying in my Shopify store which is located in EU. I wonder what changes have you done to be Brexit compliant?
We are a new company and still not registered for VAT in our own country because we haven't hit the threshold of 75K yet. Do I still need to register for VAT in the UK in order to be selling to them?
The sale of goods from EU merchants to UK customers have become imports (the receipt of goods into a country or customs union from outside country or customs union) rather than acquisitions (the receipt of goods from one EU member state to another EU member state).
The UK VAT laws that came into force on January 1, 2021 result in new VAT requirements for sales equal to or less than £135.
Under the new laws, the sale of goods equal to or less than £135 require you to register for VAT in the UK. In this case, VAT is collected at the point of sale and remitted by the merchant. If you use registration-based taxes and have a UK VAT registration, then VAT will be applied to your sales to customers in the UK.