Common VAT Rules After Brexit

  • Updated on February 4, 2022
  • General

VAT or Value Added Tax is usually charged on a saleable product each time it goes through the sale. It helps the government to earn money without charging the taxpayers a lot at once.

Like many other countries, the UK or the United Kingdom also applies VAT on many items. The UK has recently designed a new scheme related to the VAT after it exited from the EU. This new set of rules is applied from January 2021.

If you own a small business or start-up number, you may need help from well-known VAT accounting services to comply with the new rules and tax regimen.

You can get help from Pearl Lemon Accountants, one of the UK’s most notable VAT accounting agencies. They understand each business’s unique demand and help them understand the different aspects of VAT rules for marinating your legal status and seamless business operations.

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After Brexit, many rules have changed in the business transaction within the UK- namely in Britain, Ireland, and Scotland region. Here are a few guidelines for you-

  • If any item is purchased from the UK in Ireland within the price range of £150, there will be no import duty.
  • Products except for books, gaming consoles, DSLR and mobiles, and computers, which have a price tag higher than GBP 150, will vary from 0% to 16.9%.
  • If items are sold in the UK from Ireland, the sold items will be treated as exports. The online sales will be treated as exports and will not be liable for UK VAT.
  • In the case of Ireland, import VAT will be levied on every item from Britain as Britain is no longer a part of the EU. The general VAT rate is 23% in Ireland. Books, children’s apparel like clothing, and footwear (from zero months to 11n years of age) do not cost any Import VAT.

Online Shopping

  • The e-commerce portal can collect EU Vat in online shopping if the products are imported in any EU country from Ireland or Britain. Amazon will be selling items with VAT with the tax added during the checkout.
  • In case the price is under £150, the e-commerce site can collect vat during the POS.
  • Individual online retailers can charge Irish VAT during the sale. They can also sell items with a No VAT tag. Buyers will have to pay the VAT at delivery on products with “NO-VAT” tags.  
  • The rule is also the same for products with a higher price range.

VAT Charges Applicable during Delivery

  • In case the delivering agency needs to collect the VAT, the product buyer will have to pay it during the delivery-
  • For any item delivered through post, the VAT will be GBP 3.50 per item.
  • In delivery through DHL Express, the VAT will be 2.5% of the item price or a minimum of £14.5, whichever is applicable.
  • In the case of delivery through FedEx, the import VAT will be either £15 or 2.5% of the price tag.

VAT Invoice Guidance

Brand and sellers need to mention VAT as output VAT, and their invoice should declare the VAT percentage and the VAT amount in the invoice.


After Brexit, the VAT rules of the UK and Ireland have changed a lot. Businesses need to keep up with the VAT rules for a better consumer experience. In case an organization needs some guidance, they can get professional VAT accounting services for better guidance. 


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