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Posted Mon, 23 Nov 2020 14:03:11 GMT by ETBookkeeping Services Teofil
I have a client based in Romania that supplies through 2 Online Market Places auto parts to UK Customers. I need to establish and guide them on what VAT and reporting changes do they need to make, as they have a UK VAT Registration number and have quarterly VAT Returns to submit to HMRC based on their OMP sales. Please send me the HMRC webinars and guidance applicable in this case, the VAT section/s applicable to make their transition as smooth as possible. I have found some guidance but it is still unclear if they will need a VAT registration number as the OMP is deemed as the seller and has to charge VAT deepening on the value of the item/package sent to UK.
Posted Fri, 27 Nov 2020 11:24:30 GMT by HMRC Admin 10

The rules from January 2021 regarding making sales through an online market place can be found here:

VAT and overseas goods sold to customers in Great Britain using online marketplaces from 1 January 2021


Posted Thu, 17 Dec 2020 13:23:00 GMT by Tax Advisor
Thank you for clarifying this. I have a question in this regard. Say for example the OMP deducts the VAT (20%) for HMRC from the sellers sale but the seller was previously on Flat Rate Scheme (12%), how does the seller get their 8% back? Regards
Posted Mon, 21 Dec 2020 11:22:41 GMT by HMRC Admin 10

Sellers who are using the Flat Rate Scheme must decide if they want to remain in the scheme from 1 January 2021.

Any sales a seller makes through an online marketplace, where the online marketplace is liable to account for the VAT, will not be included in the Flat Rate Scheme calculation from 1 January 2021.

Sellers who decide to remain in the scheme will continue to be subject to its conditions, including the restrictions on recovering VAT.

A seller can decide to leave the scheme at any time.


Posted Tue, 05 Jan 2021 10:59:26 GMT by ETBookkeeping Services Teofil
Good Morning, My overseas client came back to me with further questions. I need to clarify if a UK EORI will be advantageous in terms of their OMP Sales Business to Business or to individual customers that are VAT Registered and could claim back VAT/VAT Import Duties on their VAT Return. Another question was about the 'Certificate of Origin' - my client brings motor parts from China and Taiwan to Romania. Thereon, from their warehouse in Romania gets sold through an OMP to UK. Would there be a chance that they qualify for relief on VAT Import Duties. Thank you for your help and assistance.
Posted Wed, 13 Jan 2021 13:39:44 GMT by HMRC Admin 4
Our step-by-step guide for importing goods into the UK advises when an EORI number is needed:

Import goods into the UK: step by step

For guidance on accounting for import VAT please refer to our online guidance, which explains who and when you can account for this on your VAT return:

Check when you can account for import VAT on your VAT Return

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