VAT Brexit - Brexit with Value Added Tax (VAT) implications.
23/03/2021
We have made changes to the store software resulting from Brexit. This is an important change for all stores where orders with delivery to the UK are possible. As the UK is no longer part of the European Union, it is no longer possible to sell goods with 23% VAT or EU VAT.
Changes:
- The current VAT rate for the UK is 0% VAT ex.
- A minimum order amount for delivery to the UK has been introduced: 135 pounds. This is due to the fact that for transactions below this amount, the selling company must apply for an EORI GB number and pay VAT directly to the UK office. The order value is checked at the moment of clicking the button on the cart page: Go to confirmation.
- The minimum order value of 135 pounds applies only to purchases made by individuals, not to transactions made by companies.
- The condition for the correct functioning of this functionality after the update is: an active Pound currency in the store and a correctly defined exchange rate for this currency.
If the Pound is an active currency in your store, you don't have to do anything, the changes will start working after the store update. If you have not sold to the UK before, activate the Pound (GBP) currency and enter its correct exchange rate.
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