As of 31st January 2020, the United Kingdom officially ceased to be a member state of the European Union, and as of 1st January 2021 – after much “back and forth” about whether or not an agreement could be reached and which one was mutually beneficial – Brexit officially came into effect.
Thus, the United Kingdom has left the European podium in terms of online shopping to Germany, but not without having established a set of rules for those selling on ecommerce platforms.
But what are the essential things to know if you decide to set up shop in the UK?
Operators shipping to the UK must charge VAT on orders under £135 (approximately €147). For orders above this amount, VAT is charged to the buyer in the UK.
The EORI – Economic Operator Registration and Identification – is the mandatory code for passing through customs. It is used for electronic tracking of customs activities and identifies the registration and identification number of economic operators. Anyone trading to or from the UK must have one, otherwise you could face detention, fines or seizure of your cargo.
Distribution and shipping costs increase. VAT and customs duties are factored into the buying process, so make sure you provide your buyers with all the additional information they need – such as shipping requirements and transactions with the UK – be clear about prices, and state the final price from the outset.