New relations between the European Union and London are also changing the rules that sellers using e-commerce platforms must follow. Here is a quick guide
The agreement between United kingdom And theEuropean Union Barely signed on last Christmas Eve it just didn’t stop anyone’s ghost Difficult Brixi. The text (which must be ratified by the European Parliament by February 28, 2021) states this “Free Trade Agreement” Between London and Brussels e “It includes – Union summarizes European – Provisions designed to facilitate Digital commerce, Removing undue obstacles and ensuring an open, safe and reliable environment on the Internet for businesses and consumers. ”
But freeing up space and removing obstacles is not enough to leave everything as it was, not even for companies that buy and sell online. From January 1, 2021, the UK and the European Union are de facto “Two separate marketsTwo distinct regulatory and legal areas. With “Barriers – trade, goods and services, cross-border movement and exchange – that have been abolished for decades. These barriers will interfere with trade in both directions, affecting public administrations, companies, citizens and stakeholders on both sides.”, Confirms the European Union. Then the companies that have dealings with the island must be reckoned with Taxes H AchievementsEven for occasional movements.
Eori and value-added tax for e-commerce between the United Kingdom and the European Union
L ‘Value added tax, VAT, once again will be a hindrance for businesses crossing borders, including e-commerce operators. The The UK makes a difference Big between Orders higher or lower All 135 pounds. For those outside the threshold, It reads on the Downing Street websiteAnd the “ VAT on import and customs duties (including excise tax if due) are to be paid by the UK buyer and collected by the courier operator.
For orders under $ 135, it will be necessary to pay tax at the time of sale, so you can count on one Active tax position in London. However, things are greatly simplified if the small cult trade is done through the shop Digital (From Amazon onwards) because at this point they are expected to be responsible for registering and paying VAT.
For UK operators that instead They sell online – and not only – in Italy a less complex, but not simpler procedure is envisaged. Revenue Agency He explained From having to regard the United Kingdom of all intents and purposes as a third country after the entry into force of Brexit, despite a broad free trade agreement. In this case there are no thresholds to bypass or contain: UK merchants will need to select a tax representative Italian And ask for a number of The purchase tax To be able to buy and sell.
Also shoot The obligation to have Eori code For anyone doing business between Europe and the United Kingdom. The code defines a file Registration number and identities of economic actors (Eori from the English acronym, in fact) It is one The alphanumeric structure required to register and identify economic actors in relations with the authority. You must have it “Which economic operator”, Confirmed by the Institute of Foreign Trade (ICE), and is also required in the United Kingdom. “If the goods arrive at customs and you do not have an Eori code, you may run the risk of goods being banned, a fine and / or goods confiscated.”, ICE warns.
Slowed return of goods
The critical node for those who do trade online is revenue management. Shipbro, Which is a cargo management and tracking platform, is confirmed in the returned report “To and from the United Kingdom and the European Union can undergo changes. It is expected Delays in shipments“ With the consequences of that “Dissatisfaction” Of clients awaiting refund. Our advice to traders – said Francesco Borghi, CEO of ShippyPro – is being Play in advance Reviewing the shipping strategy for e-commerce without eliminating the possibility of returns in major markets. “
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