VAT Post Brexit Transition Period End

[Mantra]

Thank you Josh, your response is reassuring.

I thought I would flag this one up to be prepared if necessary to make changes ready to publish on 31 December effective from 1 January 2021.

Kind regards, Martin

[Josh Barling]

This is a subject we'll be releasing more information on before the deadline.

The unfortunate answer to your questions is, 'it depends' as there are many unique scenarios that require a different setup. However, you are largely correct, but to be completely clear and use the correct terminology: you must charge VAT to EU customers, but the VAT amount is 0%, this is known as Zero-rated VAT.


The shipping VAT should follow the same VAT charge as the products - therefore its likely to be zero-rated VAT.


There are further changes required and we'll do our best to explain what they are and how to apply them.


Thanks, Josh

[Mantra]

Assuming whatever, I am expecting that UK VAT will no longer apply for goods supplied to Non VAT Registered customers in EU member states from 1 January 2021.
I think the simple solution then would be to update Business Settings | Tax to transfer all EU member states from Tax 1 (UK Standard VAT) over to No Tax Levied and to make any particular changes in Business Settings | Shipping and Handling Zone/Class tables if needed or required for EU member states.
Would this be correct?