VAT Post Brexit Transition Period End

[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?

[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]

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]

No worries Martin,

There is a lot of uncertainty, but we will be recommending that you prepare a plan ready for implementation on 1st Jan 2021 - we will be providing more practical information although we always recommend you carry out your own research.

Thanks, Josh.

[zgap111]

We are closed during Christmas... so we will possibly have some orders that are to EU with VAT on, but will be sending after 1st Jan... so if there's no deal we'll have to manually zero the VAT on those...

However, today's announcement of "Landing Zones" and a date of "28th December 2020" = 3 days... The uncertainty of it all.

If there's a way to disable all sales to the EU might help?
- I could in theory make all shipping services to EU = offline only... then it's not possible to checkout for EU destinations.

[Mantra]

It may be worth considering posting a temporary message banner like the COVID one reworded to advise EU customers to order before you close or to advise EU customers not to place orders when you are closed to avoid delays.
This should reduce the number of orders to manually zero the VAT.
Even if there is a deal, VAT may still be zero rated for supplies to EU member states if the UK is no longer a party to the EU single market VAT area!

[zgap111]

Then there's goods in transit... We may just have to close off sales to EU earlier to avoid problems.

[Mantra]

I think so too!
Royal Mail latest recommended posting dates to EU countries for Christmas Delivery 2020:
11 December - Greece & Eastern Europe (except Czech Republic, Poland and Slovakia)
12 December - Czech Republic, Finland, Italy, Poland, Sweden
16 December - Austria, Denmark, Germany, Iceland, Netherlands, Portugal, Slovakia, Spain
18 December - Belgium, France, Ireland, Luxembourg

[Mantra]

May need to close off sales to EU .... - see blog link(s) below:
https://www.avalara.com/vatlive/en/v...dec-20200.html

[Josh Barling]

Hi All, the patches are now available here - https://community.sellerdeck.com/for...-patch-release

Thanks, Josh

[zgap111]

I haven't installed (as we're still on v18.02)... is the new EU invoice a separate *.rpt file?

[Josh Barling]

I haven't installed (as we're still on v18.02)... is the new EU invoice a separate *.rpt file?

Yes it is.

Thanks Josh

[Josh Barling]

Does the new EU invoice *.rpt allow for an 8 digit HS code to print on one line?
The knowledge base example shows only 6 digit HS codes.
Martin
Mantra Audio

Yes, we didn't limit the field to 6 digits so you can add more digits to include the additional digits for the HTS Code.

[guccij]

Am getting an error on trying to print the new EU packing list: ODBC error: system resource exceeded.

[guccij]

So I've found lots of posts including a recent knowledge base article on this error. I have tried all the fixes and none of them works. My other packing lists print perfectly well, I have compacted and repaired the database and the site is functioning completely normally. What have I missed?