HMRC impact assessment for the VAT treatment of low value parcels
Following on from information shared as part of the weekly Business Readiness Forum reports, HMRC have published an impact assessment for the VAT treatment of low value parcels.
This impact assessment sets out the impact of changes made by the Value Added Tax (Postal Packets and Amendment) (EU Exit) Regulations 2018, which were laid before Parliament in December 2018.
These Regulations make an overseas supplier sending parcels containing goods valued at £135 or less to the UK responsible for paying any import VAT that is due on the goods.
It also removes Low Value Consignment Relief (LVCR) which relieves import VAT on commercial imports of goods valued at £15 or less.